December 29, 2000
To Shareholders of the following Series of the Exeter Fund:
Defensive Series
Blended Asset Series I
Blended Asset Series II
Maximum Horizon Series
Tax Managed Series
PureMarkSM Series
Dear Shareholder:
Enclosed are copies of the Annual Reports for each of the above Series of the
Exeter Fund in which you owned shares as of October 31, 2000. The reports
include information about the Series' performance as well as portfolio listings
as of that date.
Please contact our Fund Services department at 1-800-466-3863 or your Client
Consultant if you have any questions about your holdings in the Exeter Fund.
Sincerely,
/s/ Amy J. Williams
Amy J. Williams
Fund Services Manager
<PAGE>
<PAGE>
Exeter Fund, Inc.
Annual Report
October 31, 2000
Tax Managed Series
<PAGE>
Management Discussion and Analysis
DEAR SHAREHOLDERS:
After experiencing historic growth over the last few years, the economy has
shown signs of weakness in the year 2000. It is possible that the current bull
market may be running out of steam. More and more factors seem to be pointing
us in that direction. Over the course of the last six months, the stock market
has scratched and clawed to get a little ahead, only to get knocked back again
and again. Many of the areas that were hottest last year have weakened
significantly this year, and vast numbers of investors have been severely
punished by piling on the bandwagon at high prices just in time for a decline.
With the extraordinary returns in many large growth stocks in recent years, many
value managers had given up on their focus and changed their style to try to
take advantage of the popular growth stocks. We have been determined to stick
with our long-term focus on value and now are reaping the rewards. Growth
stocks took a hit this year, while value stocks improved. The Russell 3000
Growth Index is down 6.4% this year, while the Russell 3000 Value Index is up
6.4% through October 31st.
Sticking to our disciplines does not mean we have not been active in looking for
opportunities. The Tax Managed Series has generated attractive returns over the
last year through participation in a diverse group of successful areas,
including oil stocks, healthcare, defense stocks and electric utilities. We
have recently added to our exposure in pharmaceutical companies, taking
advantage of what we believe to be temporary issues that created attractive
buying opportunities. We have also recently added to our holdings of global
consumer product companies. The prices of some of these companies have been
affected by issues such as the decline of the euro, which enabled us to purchase
strong companies at favorable valuations. We are particularly pleased that we
have been able to provide strong returns and at the same time keep taxable
distributions to a minimum.
So far this year, the equity markets have experienced an unaccustomed taste of
trouble. Given factors such as high oil prices, a divisive presidential
election, and a slowing economy, it is highly likely that the volatility could
continue. To say the least, the next few months should be interesting. While
it is always important to be aware of the near-term factors driving the markets,
success is ultimately dependent upon recognizing the longer-term trends. We
have put ourselves in a position to succeed in a tougher, unpredictable market
by focusing on value and a long-term outlook with our investments.
As always, we appreciate the opportunity to serve you.
Sincerely,
EXETER ASSET MANAGEMENT
1
<PAGE>
Management Discussion and Analysis
[graphic]
[pie chart]
Portfolio Composition - As of 10/31/00
Chemicals & Allied Products - 22%
Crude Petroleum & Natural Gas - 9%
Electronics & Electrical Equipment - 3%
Food & Kindred Products - 8%
Glass Products - 5%
Industrial & Commercial Machinery - 4%
Paper & Allied Products - 7%
Software - 4%
Technical Instruments & Supplies - 5%
Telecommunication Services - 5%
Transportation - 4%
Cash, short-term investments, and other assets, less liabilities - 5%
Miscellaneous* - 19%
* Miscellaneous
Air Transportation
Computer Equipment
Computer Integrated Systems Design
Health Services
Investors
Investment Advisers
Motion Picture Production
National Commercial Banks
Non-Depository Credit Institutions
Primary Metal Industries
Restaurants
Rubber & Plastic Footwear
2
<PAGE>
Performance Update as of October 31, 2000
Exeter Fund, Inc. - Tax Managed Series
Total Return
Through Growth of $10,000 Average
10/31/00 Investment Cumulative Annual
One Year $13,163 31.63% 31.63%
Inception 1 $23,863 138.63% 18.98%
Standard & Poor's 500 Total Return
Total Return
Through Growth of $10,000 Average
10/31/00 Investment Cumulative Annual
One Year $10,608 6.08% 6.08%
Inception 1 $26,656 166.56% 21.64%
The value of a $10,000 investment in the Exeter Fund, Inc. - Tax Managed Series
from its inception (11/1/95) to present (10/31/00) as compared to the Standard
and Poor's (S&P) 500 Total Return Index. 2
[graphic]
[line chart]
Data for line chart to follow:
Exeter Fund, Inc. Standard & Poor's 500
Date Tax Managed Series Total Return Index
11/01/95 10,000 10,000
10/31/96 11,630 12,408
10/31/97 15,200 16,392
10/31/98 14,855 19,996
10/31/99 18,129 25,127
10/31/20 23,863 26,656
1 The Series and Index performance are calculated from November 1, 1995, the
Series' inception date. The Series' performance is historical and may not be
indicative of future results.
2 The Standard & Poor's (S&P) 500 Total Return Index is an unmanaged
capitalization-weighted measure of 500 widely held common stocks listed on the
New York Stock Exchange, American Stock Exchange and the Over-the-Counter
Market. The Index returns assume reinvestment of income and, unlike Series
returns, do not reflect any fees or expenses.
3
<PAGE>
Investment Portfolio - October 31, 2000
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
COMMON STOCK - 94.98%
<S> <C> <C>
AIR TRANSPORTATION - 0.96%
FedEx Corp.*. . . . . . . . . . . . . . . . . . . . . . . . . 400 $ 18,744
---------
CHEMICAL & ALLIED PRODUCTS - 21.61%
PHARMACEUTICAL PREPARATIONS - 13.85%
American Home Products Corp.. . . . . . . . . . . . . . . . 650 41,275
Bristol-Myers Squibb Co.. . . . . . . . . . . . . . . . . . 350 21,328
Johnson & Johnson . . . . . . . . . . . . . . . . . . . . . 175 16,122
Pfizer, Inc.. . . . . . . . . . . . . . . . . . . . . . . . 887 38,307
Pharmacia Corp. . . . . . . . . . . . . . . . . . . . . . . 646 35,530
Schering-Plough Corp. . . . . . . . . . . . . . . . . . . . 900 46,519
Teva Pharmaceutical Industries Ltd. - ADR (Israel) (Note 7) 1,200 70,950
---------
270,031
---------
MISCELLANEOUS - 7.76%
Dow Chemical Co.. . . . . . . . . . . . . . . . . . . . . . 400 12,250
Gillette Co.. . . . . . . . . . . . . . . . . . . . . . . . 625 21,797
PPG Industries, Inc.. . . . . . . . . . . . . . . . . . . . 275 12,272
Procter & Gamble Co.. . . . . . . . . . . . . . . . . . . . 300 21,431
Sherwin-Williams Co.. . . . . . . . . . . . . . . . . . . . 1,675 36,327
Sigma-Aldrich Corp. . . . . . . . . . . . . . . . . . . . . 1,325 47,369
---------
151,446
---------
421,477
---------
COMPUTER EQUIPMENT - 2.50%
Compaq Computer Corp. . . . . . . . . . . . . . . . . . . . . 1,600 48,656
---------
COMPUTER INTEGRATED SYSTEMS DESIGN - 1.22%
Parametric Technology Corp.*. . . . . . . . . . . . . . . . . 1,925 23,702
---------
CRUDE PETROLEUM & NATURAL GAS - 9.12%
Gulf Canada Resources Ltd. - ADR* (Canada) (Note 7) . . . . . 11,000 46,750
Halliburton Co. . . . . . . . . . . . . . . . . . . . . . . . 600 22,237
Petroleo Brasileiro S.A. (Petrobras) - ADR (Brazil) (Note 7). 3,100 82,210
Schlumberger Ltd. . . . . . . . . . . . . . . . . . . . . . . 350 26,644
---------
177,841
---------
ELECTRONICS & ELECTRICAL EQUIPMENT - 3.17%
Koninklijke Royal Philips Electronics NV-
ADR (Netherlands) (Note 7) . . . . . . . . . . . . . . 892 35,624
Motorola, Inc.. . . . . . . . . . . . . . . . . . . . . . . . 1,050 26,184
---------
61,808
---------
</TABLE>
The accompanying notes are an integral part of the financial statements.
4
<PAGE>
Investment Portfolio - October 31, 2000
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------- --------
<S> <C> <C>
FOOD & KINDRED PRODUCTS - 8.02%
Diageo plc - ADR (United Kingdom) (Note 7) . . . . . . 800 30,100
Flowers Industries, Inc. . . . . . . . . . . . . . . . 1,000 15,375
H.J. Heinz Co. . . . . . . . . . . . . . . . . . . . . 1,000 41,937
PepsiCo, Inc.. . . . . . . . . . . . . . . . . . . . . 300 14,531
Unilever plc - ADR (United Kingdom) (Note 7) . . . . . 1,950 54,356
--------
156,299
--------
GLASS PRODUCTS - 5.30%
Corning, Inc.. . . . . . . . . . . . . . . . . . . . . 1,350 103,275
--------
HEALTH SERVICES - 2.88%
Caremark Rx, Inc.* . . . . . . . . . . . . . . . . . . 4,500 56,250
--------
INDUSTRIAL & COMMERCIAL MACHINERY - 4.13%
Baker Hughes, Inc. . . . . . . . . . . . . . . . . . . 275 9,453
Diebold, Inc.. . . . . . . . . . . . . . . . . . . . . 800 20,800
Minnesota Mining & Manufacturing Co. (3m). . . . . . . 350 33,819
Parker-Hannifin Corp.. . . . . . . . . . . . . . . . . 400 16,550
--------
80,622
--------
INVESTMENT ADVISERS - 0.57%
Stilwell Financial, Inc. . . . . . . . . . . . . . . . 250 11,203
--------
INVESTORS - 1.63%
Reed International plc - ADR (United Kingdom) (Note 7) 850 31,769
--------
MOTION PICTURE PRODUCTION - 1.99%
News Corporation Ltd. - ADR (Australia) (Note 7) . . . 575 20,808
Walt Disney Co.. . . . . . . . . . . . . . . . . . . . 500 17,906
--------
38,714
--------
NATIONAL COMMERCIAL BANKS - 2.92%
Bank of New York Company, Inc. . . . . . . . . . . . . 175 10,073
Chase Manhattan Corp.. . . . . . . . . . . . . . . . . 150 6,825
FleetBoston Financial Corp.. . . . . . . . . . . . . . 225 8,550
Mellon Financial Corp. . . . . . . . . . . . . . . . . 250 12,063
M & T Bank Corp. . . . . . . . . . . . . . . . . . . . 200 10,040
State Street Corp. . . . . . . . . . . . . . . . . . . 75 9,356
--------
56,907
--------
NON-DEPOSITORY CREDIT INSTITUTIONS - 0.58%
MBNA Corp. . . . . . . . . . . . . . . . . . . . . . . 300 11,269
--------
</TABLE>
The accompanying notes are an integral part of the financial statements.
5
<PAGE>
Investment Portfolio - October 31, 2000
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------- --------
<S> <C> <C>
PAPER & ALLIED PRODUCTS - 6.99%
Aracruz Celulose SA - ADR (Brazil) (Note 7). . . . . . . 950 14,250
Fort James Corp. . . . . . . . . . . . . . . . . . . . . 900 29,644
International Paper Co.. . . . . . . . . . . . . . . . . 900 32,962
Kimberly-Clark Corp. . . . . . . . . . . . . . . . . . . 900 59,400
--------
136,256
--------
PRIMARY METAL INDUSTRIES - 1.08%
Phelps Dodge Corp. . . . . . . . . . . . . . . . . . . . 450 21,038
--------
RESTAURANTS - 1.59%
McDonald's Corp. . . . . . . . . . . . . . . . . . . . . 1,000 31,000
--------
RUBBER & PLASTIC FOOTWEAR - 1.43%
NIKE, Inc. - Class B . . . . . . . . . . . . . . . . . . 700 27,956
--------
SOFTWARE - 3.51%
Computer Associates International, Inc.. . . . . . . . . 700 22,312
Oracle Corp.*. . . . . . . . . . . . . . . . . . . . . . 1,400 46,200
--------
68,512
--------
TECHNICAL INSTRUMENTS & SUPPLIES - 5.14%
Becton, Dickinson & Co.. . . . . . . . . . . . . . . . . 700 23,450
Eastman Kodak Co.. . . . . . . . . . . . . . . . . . . . 600 26,925
Millipore Corp.. . . . . . . . . . . . . . . . . . . . . 950 49,875
--------
100,250
--------
TELECOMMUNICATION SERVICES - 4.92%
SBC Communication, Inc.. . . . . . . . . . . . . . . . . 425 24,517
Telecomunicacoes Brasileiras S.A. (Telebras) -
ADR (Brazil) (Note 7). . . . . . . . . . . . . . . . 600 43,950
Telenorte Leste Participacoes S.A. ADR (Brazil) (Note 7) 70 1,549
Verizon Communications, Inc. . . . . . . . . . . . . . . 450 26,016
--------
96,032
--------
TRANSPORTATION - 3.72%
Boeing Co. . . . . . . . . . . . . . . . . . . . . . . . 550 37,297
Canadian National Railway Co. - ADR (Canada) (Note 7). . 1,100 34,650
Kansas City Southern Industries, Inc.. . . . . . . . . . 62 543
--------
72,490
--------
</TABLE>
The accompanying notes are an integral part of the financial statements.
6
<PAGE>
Investment Portfolio - October 31, 2000
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
---------- --------
<S> <C> <C>
TOTAL COMMON STOCK
(Identified Cost $1,268,711) . . . $1,852,070
----------
SHORT-TERM INVESTMENTS - 4.91%
Dreyfus Treasury Cash Management Fund
(Identified Cost $95,728). . . . . 95,728 95,728
----------
TOTAL INVESTMENTS - 99.89%
(Identified Cost $1,364,439). . . . . 1,947,798
OTHER ASSETS, LESS LIABILITIES - 0.11% 2,202
----------
NET ASSETS - 100%. . . . . . . . . . . $1,950,000
==========
</TABLE>
*Non-income producing security
ADR - American Depository Receipt
Federal Tax Information:
At October 31, 2000, the net unrealized appreciation based on identified cost
for federal income tax purposes of $1,364,439 was as follows:
Unrealized appreciation $596,787
Unrealized depreciation (13,428)
---------
UNREALIZED APPRECIATION - NET $ 583,359
==========
The accompanying notes are an integral part of the financial statements.
7
<PAGE>
STATEMENT OF ASSETS & LIABILITIES
<TABLE>
<CAPTION>
October 31, 2000
ASSETS:
<S> <C>
Investments, at value (identified cost $1,364,439)(Note 2) $1,947,798
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,046
Dividends receivable . . . . . . . . . . . . . . . . . . . 1,542
Interest receivable. . . . . . . . . . . . . . . . . . . . 315
Receivable from investment advisor (Note 3). . . . . . . . 36,550
-----------
TOTAL ASSETS . . . . . . . . . . . . . . . . . . . . . . . 1,987,251
-----------
LIABILITIES:
Accrued directors' fees (Note 3) . . . . . . . . . . . . . 9,337
Accrued fund accounting fees (Note 3). . . . . . . . . . . 3,979
Audit fee payable. . . . . . . . . . . . . . . . . . . . . 9,913
Registration and filing fees payable . . . . . . . . . . . 8,129
Legal fees . . . . . . . . . . . . . . . . . . . . . . . . 4,454
Other payables and accrued expenses. . . . . . . . . . . . 1,439
-----------
TOTAL LIABILITIES. . . . . . . . . . . . . . . . . . . . . 37,251
-----------
TOTAL NET ASSETS . . . . . . . . . . . . . . . . . . . . . $1,950,000
===========
NET ASSETS CONSIST OF:
Capital stock. . . . . . . . . . . . . . . . . . . . . . . $ 854
Additional paid-in-capital . . . . . . . . . . . . . . . . 1,371,600
Undistributed net investment income. . . . . . . . . . . . 5,660
Accumulated net realized loss on investments . . . . . . . (11,473)
Net unrealized appreciation on investments . . . . . . . . 583,359
-----------
TOTAL NET ASSETS . . . . . . . . . . . . . . . . . . . . . $1,950,000
===========
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE - CLASS A
($1,950,000/85,406 shares). . . . . . . . . . . . . . . $ 22.83
===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
8
<PAGE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
FOR THE YEAR ENDED OCTOBER 31, 2000
INVESTMENT INCOME:
<S> <C>
Dividends (net of foreign tax withheld, $640) . . . . $ 20,859
Interest. . . . . . . . . . . . . . . . . . . . . . . 3,600
---------
TOTAL INVESTMENT INCOME . . . . . . . . . . . . . . . 24,459
---------
EXPENSES:
Management fees (Note 3). . . . . . . . . . . . . . . 15,617
Fund accounting fees (Note 3) . . . . . . . . . . . . 28,805
Directors' fees (Note 3). . . . . . . . . . . . . . . 7,222
Transfer agent fees (Note 3). . . . . . . . . . . . . 374
Custodian fees. . . . . . . . . . . . . . . . . . . . 3,005
Audit fee . . . . . . . . . . . . . . . . . . . . . . 6,015
Registration and filing fees. . . . . . . . . . . . . 5,749
Miscellaneous . . . . . . . . . . . . . . . . . . . . 4,186
---------
Total Expenses. . . . . . . . . . . . . . . . . . . . 70,973
Less Reduction of Expenses (Note 3) . . . . . . . . . (52,167)
---------
Net Expenses. . . . . . . . . . . . . . . . . . . . . 18,806
---------
NET INVESTMENT INCOME . . . . . . . . . . . . . . . . 5,653
---------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized loss on investments. . . . . . . . . . . (2,450)
Net change in unrealized appreciation on investments. 366,275
---------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS . . . . . . . . . . . . . . . . . . 363,825
---------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS. . . . . . . . . . . . . . . . . . $369,478
=========
</TABLE>
The accompanying notes are an integral part of the financial statements.
9
<PAGE>
STATEMENTS OF CHANGES
<TABLE>
<CAPTION>
FOR THE FOR THE
YEAR YEAR
ENDED ENDED
10/31/00 10/31/99
----------- -----------
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
<S> <C> <C>
Net investment income . . . . . . . . . . . . . . . . $ 5,653 $ 4,683
Net realized loss on investments. . . . . . . . . . . (2,450) (375)
Net change in unrealized appreciation on investments. 366,275 164,611
----------- -----------
Net increase from operations. . . . . . . . . . . . . 369,478 168,919
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 2):
From net investment income. . . . . . . . . . . . . . (5,251) (7,164)
From net realized gain on investments ----- (3,302)
----------- -----------
Total distributions to shareholders . . . . . . . . . (5,251) (10,466)
----------- -----------
CAPITAL STOCK ISSUED AND
REPURCHASED:
Net increase from capital share transactions (Note 5) 516,827 138,747
----------- -----------
Net increase in net assets. . . . . . . . . . . . . . 881,054 297,200
NET ASSETS:
Beginning of year . . . . . . . . . . . . . . . . . . 1,068,946 771,746
----------- -----------
END OF YEAR (including undistributed net investment
income of $5,660 and $5,246, respectively) . . . . $1,950,000 $1,068,946
=========== ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
10
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
FOR THE YEAR ENDED
10/31/00 10/31/99 10/31/98 10/31/97 10/31/96
-------------------- ---------- ---------- ---------- ----------
Per share data (for a share outstanding throughout
each period):
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE - BEGINNING OF PERIOD. . . . . . . . $ 17.42 $ 14.46 $ 15.20 $ 11.63 $ 10.00
-------------------- ---------- ---------- ---------- ----------
Income from investment operations:
Net investment income (loss)* . . . . . . . . . . 0.07 0.08 0.10 (0.01) (0.02)
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . . . . . 5.43 3.07 (0.44) 3.58 1.65
-------------------- ---------- ---------- ---------- ----------
Total from investment operations . . . . . . . . . . 5.50 3.15 (0.34) 3.57 1.63
-------------------- ---------- ---------- ---------- ----------
Less distributions to shareholders:
From net investment income. . . . . . . . . . . . (0.09) (0.13) -- -- --
From net realized gain on investments . . . . . . -- (0.06) (0.40) -- --
-------------------- ---------- ---------- ---------- ----------
Total distributions to shareholders. . . . . . . . . (0.09) (0.19) (0.40) -- --
-------------------- ---------- ---------- ---------- ----------
NET ASSET VALUE - END OF PERIOD. . . . . . . . . . . $ 22.83 $ 17.42 $ 14.46 $ 15.20 $ 11.63
==================== ========== ========== ========== ==========
Total return 1 . . . . . . . . . . . . . . . . . . . 31.63% 22.04% (2.27%) 30.70% 16.30%
Ratios (to average net assets) / Supplemental Data:
Expenses*. . . . . . . . . . . . . . . . . . . . 1.20% 1.20% 1.20% 1.20% 1.20%
Net investment income (loss)*. . . . . . . . . . 0.36% 0.49% 0.73% (0.09%) (0.21%)
Portfolio turnover . . . . . . . . . . . . . . . . . 67% 85% 65% 103% 78%
NET ASSETS - END OF PERIOD (000's omitted) . . . . . $ 1,950 $ 1,069 $ 772 $ 524 $ 224
==================== ========== ========== ========== ==========
</TABLE>
* The investment advisor did not impose its management fee and paid a portion of
the Series' expenses. If these expenses had been incurred by the Series, and
had 1996 expenses been limited to that allowed by state securities law, the net
investment loss per share and the ratios would have been as follows:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Net investment income (loss) . . ($0.54) ($0.54) ($0.43) ($0.62) ($0.14)
Ratios (to average net assets):
Expenses. . . . . . . . . . . 4.54% 3.87% 5.17% 8.08% 2.50%
Net investment income (loss). (2.98%) (2.18%) (3.24%) (6.97%) (1.51%)
</TABLE>
1 Represents aggregate total return for the period indicated.
The accompanying notes are an integral part of the financial statements.
11
<PAGE>
Notes to Financial Statements
1. ORGANIZATION
Tax Managed Series (the "Series") is a no-load diversified series of Exeter
Fund, Inc. (the "Fund"). The Fund is organized in Maryland and is registered
under the Investment Company Act of 1940, as amended, as an open-end management
investment company.
The Series' investment objective is to maximize long-term growth while
attempting to minimize the impact of taxes on the series' total return.
The Series is authorized to issue five classes of shares (Class A, B, C, D, and
E). Currently, only Class A shares have been issued. Each class of shares is
substantially the same, except that class-specific distribution and shareholder
servicing expenses are borne by the specific class of shares to which they
relate.
The total authorized capital stock of the Fund consists of 1.7 billion shares of
common stock each having a par value of $0.01. As of October 31, 2000, 1.4
billion shares have been designated in total among 28 series, of which 37.5
million have been designated as Tax Managed Series Class A Common Stock.
2. SIGNIFICANT ACCOUNTING POLICIES
SECURITY VALUATION
Portfolio securities, including domestic equities, foreign equities, options and
corporate bonds, listed on an exchange are valued at the latest quoted sales
price of the exchange on which the security is traded most extensively.
Securities not traded on valuation date or securities not listed on an exchange
are valued at the latest quoted bid price.
Securities for which representative valuations or prices are not available from
the Fund's pricing service are valued at fair value as determined in good faith
by the Advisor under procedures established by and under the general supervision
and responsibility of the Fund's Board of Directors.
Short-term investments that mature in sixty days or less are valued at amortized
cost, which approximates market value.
SECURITY TRANSACTIONS, INVESTMENT INCOME AND EXPENSES
Security transactions are accounted for on trade date. Dividend income is
recorded on the ex-dividend date, except that if the ex-dividend date has
passed, certain dividends from foreign securities are recorded as soon as the
Fund is informed of the ex-dividend date. Interest income and expenses are
recorded on an accrual basis.
Most expenses of the Fund can be attributed to a specific series. Expenses,
which cannot be directly attributed, are apportioned among the Series in the
Fund in such a manner as deemed equitable by the Fund's Directors, taking into
consideration, among other things, the nature and type of expense.
The Series uses the identified cost method for determining realized gain or loss
on investments for both financial statement and federal income tax reporting
purposes.
FEDERAL INCOME TAXES
The Series' policy is to comply with the provisions of the Internal Revenue Code
applicable to regulated investment companies. The Series is not subject to
federal income or excise tax to the extent that the Series distributes to
shareholders each year its taxable income, including any net realized gains on
investments, in accordance with requirements of the Internal Revenue Code.
12
<PAGE>
Notes to Financial Statements
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
FEDERAL INCOME TAXES (continued)
Accordingly, no provision for federal income tax or excise tax has been made in
the financial statements.
At October 31, 2000, the Series, for federal income tax purposes, had a capital
loss carryforward of $11,473 that will expire on or before October 31, 2008.
DISTRIBUTIONS OF INCOME AND GAINS
Distributions to shareholders of net investment income are made annually.
Distributions of net realized gains are distributed annually. An additional
distribution may be necessary to avoid taxation of the Series. Distributions
are recorded on the ex-dividend date.
The timing and characterization of certain income and capital gains are
determined in accordance with federal income tax regulations which may differ
from generally accepted accounting principles. These differences are primarily
due to differing book and tax treatments in timing of recognition of investment
income or gains and losses. As a result, net investment income (loss) and net
investment gain (loss) on investment transactions for a reporting period may
differ from distributions to shareholders during such period. As a result, the
Series may periodically make reclassifications among its capital accounts
without impacting the Series' net asset value. Any such reclassifications are
not reflected in the financial highlights.
OTHER
The preparation of the 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 revenues and expenses during the
reporting period. Actual results could differ from those estimates.
3. TRANSACTIONS WITH AFFILIATES
The Fund has an investment advisory agreement with Manning & Napier Advisors,
Inc., dba Exeter Asset Management (the "Advisor"), for which the Series pays the
Advisor a fee, computed daily and payable monthly, at an annual rate of 1.0% of
the Series' average daily net assets.
Under the Fund's Investment Advisory Agreement (the "Agreement"), personnel
of the Advisor provide the Series with advice and assistance in the choice of
investments and the execution of securities transactions, and otherwise maintain
the Series' organization. The Advisor also provides the Fund with necessary
office space and fund administration services. The salaries of all officers of
the Fund and of all Directors who are "affiliated persons" of the Fund or of the
Advisor, and all personnel of the Fund or of the Advisor performing services
relating to research, statistical and investment activities are paid by the
Advisor. Each "non-affiliated" Director receives an annual stipend, which is
allocated among all of the series of the Fund. In addition, these Directors
also receive a per meeting fee for each series of the Fund.
The Advisor has contractually agreed to waive its fee and, if necessary, pay
other expenses of the Series in order to maintain total expenses for the Series
at no more than 1.2% of average daily net assets each year. Accordingly, the
Advisor did not impose any of its fee and assumed expenses amounting to $36,550
for the year ended October 31, 2000, which is reflected as a reduction of
expenses on the Statement of Operations.
13
<PAGE>
Notes to Financial Statements
3. TRANSACTIONS WITH AFFILIATES (continued)
The Advisor also acts as the transfer, dividend paying and shareholder servicing
agent for the Fund. For these services, the Series pays a fee which is
calculated as a percentage of the average daily net assets at an annual rate of
0.024%.
Manning & Napier Investor Services, Inc., a registered broker-dealer affiliate
of the Advisor, acts as distributor for the Fund's shares. The services of
Manning & Napier Investor Services, Inc. are provided at no additional cost to
the Series.
Effective April 2000 the Advisor became the Fund's accounting services agent.
For these services, the Fund pays the Advisor a fee of 0.04% of each Series'
daily net assets calculated daily and payable monthly, with a minimum annual fee
of $48,000 per Series plus out-of-pocket expenses. In addition, the Fund will
pay the Advisor an additional annual fee of $10,000 for each additional class of
a Series. The Advisor has entered into an agreement with BISYS Fund Services
Ohio, Inc. ("BISYS") under which BISYS will serve as sub-accounting services
agent.
4. PURCHASES AND SALES OF SECURITIES
For the year ended October 31, 2000, purchases and sales of securities, other
than United States Government securities and short-term securities, were
$1,438,871 and $1,002,121, respectively. There were no purchases or sales of
United States Government securities.
5. CAPITAL STOCK TRANSACTIONS
Transactions in shares of Tax Managed Series Class A Common Stock were:
<TABLE>
<CAPTION>
For the Year For the Year
Ended 10/31/00 Ended 10/31/99
--------------- ----------------
<S> <C> <C> <C> <C>
Shares Amount Shares Amount
--------------- ---------------- -------- ----------
Sold. . . . 24,831 $ 533,370 31,500 $ 526,082
Reinvested. 269 5,251 703 10,466
Repurchased (1,041) (21,794) (24,220) (397,801)
--------------- ---------------- -------- ----------
Net change. 24,059 $ 516,827 7,983 $ 138,747
=============== ================ ======== ==========
</TABLE>
The Advisor owned 23,007 shares on October 31, 2000 and 22,907 shares on October
31, 1999.
6. FINANCIAL INSTRUMENTS
The Series may trade in financial instruments with off-balance sheet risk
in the normal course of its investing activities to assist in managing exposure
to various market risks. These financial instruments include written options,
forward foreign currency exchange contracts, and futures contracts and may
involve, to a varying degree, elements of risk in excess of the amounts
recognized for financial statement purposes. No such investments were held by
the Series on October 31, 2000.
7. FOREIGN SECURITIES
Investing in securities of foreign companies and foreign governments
involves special risks and considerations not typically associated with
investing in securities of domestic companies and the United States Government.
These risks include revaluation of currencies and future adverse political and
economic developments. Moreover, securities of foreign companies and foreign
governments may be less liquid and their prices more volatile than those of
securities of comparable domestic companies and the United States Government.
14
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and Shareholders of Exeter Fund, Inc. - Tax Managed
Series:
In our opinion, the accompanying statement of assets and liabilities, including
the investment portfolio, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of the Exeter Fund, Inc.: Tax Managed
Series (the "Fund") at October 31, 2000, the results of its operations for the
year then ended and the changes in its net assets and the financial highlights
for the two years then ended, in conformity with accounting principles generally
accepted in the United States of America. These financial statements and
financial highlights (hereafter referred to as "financial statements") are the
responsibility of the Fund's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with auditing standards
generally accepted in the United States of America, which require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at October
31, 2000 by correspondence with the custodian, provide a reasonable basis for
our opinion. The financial highlights of the Fund for the years ended October
31, 1998, 1997, and 1996 were audited by other independent accountants whose
report dated December 4, 1998, expressed an unqualified opinion on those
highlights.
PricewaterhouseCoopers LLP
Boston, Massachusetts
December 15, 2000
15
<PAGE>
<PAGE>
EXETER FUND, INC.
ANNUAL REPORT
OCTOBER 31, 2000
DEFENSIVE SERIES
BLENDED ASSET SERIES I
BLENDED ASSET SERIES II
MAXIMUM HORIZON SERIES
<PAGE>
MANAGEMENT DISCUSSION AND ANALYSIS
DEAR SHAREHOLDERS:
After experiencing historic growth over the last few years, the economy has
shown signs of weakness in the year 2000. It is possible that the current bull
market may be running out of steam. More and more factors seem to be pointing
us in that direction. Over the course of the last nine months, the stock market
has scratched and clawed to get a little ahead, only to get knocked back again
and again. Many of the areas that were hottest last year have weakened
significantly this year, and vast numbers of investors have been severely
punished by piling on the bandwagon at high prices just in time for a decline.
The bond market has had its share of volatility as well. Short rates drifted
higher, but the movement away from additional short-term interest rate increases
contributed to the yield declines on intermediate bonds. For bonds with
long-term maturities, the downshift in economic momentum, along with the shift
in Fed policy, would have pushed long rates lower if not for the political
rhetoric associated with a presidential campaign. Whether we end up with tax
cuts or increased spending, a slightly less favorable supply and demand
environment troubled longer-term bonds. That prevented long-term interest rates
from falling along with the intermediate rates in the third quarter, although
long bonds remain the best-performing segment of the fixed income markets this
year.
While many investors have struggled this year to stay above water, we have been
able to take advantage of the difficult markets and generate some substantial
returns. With the extraordinary returns in many large growth stocks in recent
years, many value managers had given up on their focus and changed their style
to try to take advantage of the popular growth stocks. We have been determined
to stick with our long-term focus on value and now are reaping the rewards.
Growth stocks took a hit this year, while value stocks improved. The Russell
3000 Growth Index is down 6.4% this year, while the Russell 3000 Value Index
is up 6.4% through October 31st.
Sticking to our discipline does not mean we have not been active in looking for
opportunities. All four objective-based Series have outperformed their indices
in the past year due to participation in a diverse group of successful areas,
comprising investments in oil stocks, healthcare, defense stocks and electric
utilities. Oil stocks are a perfect example of taking advantage of a situation
when the market is struggling. Everyone feels the negative affects of the oil
situation in their personal lives, but a selection of oil producing, exploration
and services companies have added considerable value to the portfolio.
Investments in the healthcare and technology sectors are other examples of
taking advantage of volatility by buying in at depressed prices. Our current
position in technology can be viewed as merely a first step. Price declines
have created some opportunities, but we would have to see further declines to
meaningfully reduce the risk in that sector. If and when this happens, expect
to see us continue to move into technology.
So far this year, the equity markets have experienced an unaccustomed taste of
trouble. Given factors such as high oil prices, a divisive presidential
election, and a slowing economy, it is highly likely that the volatility could
continue. To say the least, the next few months should be interesting. While
it is always important to be aware of the near-term factors driving the markets,
success is ultimately dependent upon recognizing the longer-term trends. We
have put ourselves in a position to succeed in a tougher, unpredictable market
by focusing on value and a long-term outlook with our investments.
As always, we appreciate the opportunity to serve you.
Sincerely,
EXETER ASSET MANAGEMENT
1
<PAGE>
Asset Allocation - As of October 31, 2000
[graphic]
[pie chart]
Data for pie charts to follow:
Defensive Series
Stocks - 16.45%
Bonds - 81.55%
Cash, short-term investments, and other assets, less liabilities - 2.00%
Blended Asset Series I
Stocks - 46.61%
Bonds - 48.47%
Cash, short-term investments, and other assets, less liabilities - 4.92%
Blended Asset Series II
Stocks - 54.57%
Bonds - 44.49%
Cash, short-term investments, and other assets, less liabilities - 0.94%
Maximum Horizon Series
Stocks - 84.37%
Bonds - 11.29%
Cash, short-term investments, and other assets, less liabilities - 4.34%
2
<PAGE>
Performance Update as of October 31, 2000
Exeter Fund, Inc. - Defensive Series
Total Return
Through Growth of $10,000 Average
10/31/00 Investment Cumulative Annual
One Year $11,062 10.62% 10.62%
Five Year $13,684 36.84% 6.47%
Inception 1 $13,684 36.84% 6.47%
Lehman Brothers Intermediate Bond Index
Total Return
Through Growth of $10,000 Average
10/31/00 Investment Cumulative Annual
One Year $10,646 6.46% 6.46%
Five Year $13,342 33.42% 5.93%
Inception 1 $13,342 33.42% 5.93%
15-85 Blended Index
Total Return
Through Growth of $10,000 Average
10/31/00 Investment Cumulative Annual
One Year $10,668 6.68% 6.68%
Five Year $14,934 49.34% 8.34%
Inception 1 $14,934 49.34% 8.34%
The value of a $10,000 investment in the Exeter Fund, Inc. - Defensive Series
from its inception (11/1/95) to present (10/31/00) as compared to the Lehman
Brothers Intermediate Bond Index and a15-85 Blended Index. 2
[graphic]
[line chart]
Data for line chart to follow:
<TABLE>
<CAPTION>
Exeter Fund, Inc. Lehman Brothers Intermediate
Date Defensive Series Bond Index 15-85 Blended Index
<S> <C> <C> <C>
11/01/1995 10,000 10,000 10,000
10/31/1996 10,494 10,581 10,847
10/31/1997 11,411 11,374 12,052
10/31/1998 12,157 12,411 13,398
10/31/1999 12,371 12,533 13,999
10/31/2000 13,684 13,342 14,934
</TABLE>
1 Performance numbers for the Series and Indices are calculated from November 1,
1995, the Series' inception date. The Series performance is historical and may
not be indicative of future results.
2 The Lehman Brothers Intermediate Bond Index is a market value weighted measure
of approximately 3,300 corporate and government securities. The Index is
comprised of investment grade securities with maturities greater than one year
but less than ten years. The 15-85 Blended Index is 15% Standard & Poor's
(S&P) 500 Total Return Index and 85% Lehman Brothers Intermediate Bond Index.
The S&P 500 Total Return Index is an unmanaged capitalization-weighted measure
of 500 widely held common stocks listed on the New York Stock Exchange, American
Stock Exchange, and the Over-the-Counter market. Both Indices' returns assume
reinvestment of income and, unlike Series returns, do not reflect any fees or
expenses.
3
<PAGE>
Investment Portfolio - October 31, 2000
<TABLE>
<CAPTION>
VALUE
Defensive Series SHARES (NOTE 2)
--------------------------------------------------- ------- ---------
COMMON STOCK - 16.45%
<S> <C> <C>
AGRICULTURAL PRODUCTION -0.07%
Sylvan, Inc.* . . . . . . . . . . . . . . . . . . . 375 $ 3,563
---------
APPAREL - 0.43%
Adidas-Salomon AG (Germany) (Note 7). . . . . . . . 450 20,693
---------
CHEMICAL & ALLIED PRODUCTS - 2.78%
BIOLOGICAL PRODUCTS - 0.75%
Cypress Bioscience, Inc.* . . . . . . . . . . . 450 591
Sigma-Aldrich Corp. . . . . . . . . . . . . . . 1,000 35,750
---------
36,341
---------
PHARMACEUTICAL PREPARATIONS - 0.95%
Abbott Laboratories . . . . . . . . . . . . . . 25 1,320
American Home Products Corp.. . . . . . . . . . 25 1,588
Bausch & Lomb, Inc. . . . . . . . . . . . . . . 25 964
Bristol-Myers Squibb Co.. . . . . . . . . . . . 25 1,523
Merck KGaA (Germany) (Note 7) . . . . . . . . . 25 953
Pharmacia Corp. . . . . . . . . . . . . . . . . 700 38,500
Schering-Plough Corp. . . . . . . . . . . . . . 25 1,292
---------
46,140
---------
PLASTIC MATERIALS - 1.08%
Eastman Chemical Co.. . . . . . . . . . . . . . 1,200 51,450
PolyOne Corp. . . . . . . . . . . . . . . . . . 100 788
---------
52,238
---------
134,719
---------
COMMERCIAL PHYSICAL & BIOLOGICAL RESEARCH - 0.04%
Monsanto Co.* . . . . . . . . . . . . . . . . . . . 75 1,913
---------
COMPUTER INTEGRATED SYSTEMS DESIGN - 0.02%
IDX Systems Corp.*. . . . . . . . . . . . . . . . . 25 800
---------
CRUDE PETROLEUM & NATURAL GAS - 1.80%
Gulf Canada Resources Ltd. - ADR* (Canada) (Note 7) 13,600 57,800
Petroleo Brasileiro S.A. (Petrobras) -
ADR (Brazil) (Note 7) . . . . . . . . . . . . . 1,075 28,508
Stolt Offshore S.A.* (United Kingdom) (Note 7). . . 75 895
---------
87,203
---------
ELECTRIC, GAS & SANITARY SERVICES - 0.89%
Allegheny Energy, Inc.. . . . . . . . . . . . . . . 300 12,281
CH Energy Group, Inc. . . . . . . . . . . . . . . . 25 984
Cinergy Corp. . . . . . . . . . . . . . . . . . . . 350 10,719
</TABLE>
The accompanying notes are an integral part of the financial statements.
4
<PAGE>
Investment Portfolio - October 31, 2000
<TABLE>
<CAPTION>
VALUE
Defensive Series SHARES (NOTE 2)
------------------------------------------------ ------ ---------
<S> <C> <C>
ELECTRIC, GAS & SANITARY SERVICES (continued)
Conectiv, Inc. . . . . . . . . . . . . . . . . . 500 $ 8,969
FirstEnergy Corp.. . . . . . . . . . . . . . . . 400 10,350
---------
43,303
---------
ELECTRONICS & ELECTRICAL EQUIPMENT - 1.01%
The Carbide/Graphite Group, Inc.*. . . . . . . . 300 750
Raytheon Co. - Class A . . . . . . . . . . . . . 450 14,400
Texas Instruments, Inc.. . . . . . . . . . . . . 675 33,117
Veramark Technologies, Inc.* . . . . . . . . . . 175 481
---------
48,748
---------
FABRICATED METAL PRODUCTS - 0.28%
Lockheed Martin Corp.. . . . . . . . . . . . . . 350 12,548
Norddeutsche Affinerie AG (Germany) (Note 7) . . 75 762
---------
13,310
---------
FOOD & BEVERAGES - 1.90%
Diageo plc - ADR (United Kingdom) (Note 7) . . . 550 20,694
Earthgrains Co.. . . . . . . . . . . . . . . . . 50 1,013
Flowers Industries, Inc. . . . . . . . . . . . . 25 384
H.J. Heinz Co. . . . . . . . . . . . . . . . . . 900 37,744
Unilever plc - ADR (United Kingdom) (Note 7) . . 1,160 32,335
---------
92,170
---------
FRESH FRUITS & VEGETABLES - 0.01%
Fresh Del Monte Produce, Inc.* . . . . . . . . . 150 591
---------
FURNITURE & FIXTURES - 0.02%
Hillenbrand Industries, Inc. . . . . . . . . . . 25 1,156
---------
GENERAL SURGICAL & MEDICAL HOSPITALS - 0.13%
Apria Healthcare Group, Inc.*. . . . . . . . . . 25 500
HCA-The Healthcare Co. . . . . . . . . . . . . . 25 998
Healthsouth Corp.* . . . . . . . . . . . . . . . 225 2,700
Lincare Holdings, Inc.*. . . . . . . . . . . . . 25 1,052
Tenet Healthcare Corp.*. . . . . . . . . . . . . 25 983
---------
6,233
---------
GLASS PRODUCTS - 0.05%
Libbey, Inc. . . . . . . . . . . . . . . . . . . 50 1,363
Waterford Wedgwood plc (United Kingdom) (Note 7) 800 976
---------
2,339
---------
INDUSTRIAL & COMMERCIAL MACHINERY - 1.49%
Baker Hughes, Inc.. . . . . . . . . . . . . . . 300 10,312
Bell & Howell Co.* . . . . . . . . . . . . . . . 50 950
Compaq Computer Corp.. . . . . . . . . . . . . . 1,200 36,492
</TABLE>
The accompanying notes are an integral part of the financial statements.
5
<PAGE>
Investment Portfolio - October 31, 2000
<TABLE>
<CAPTION>
VALUE
Defensive Series SHARES (NOTE 2)
-------------------------------------------------- ------ ---------
<S> <C> <C>
INDUSTRIAL & COMMERCIAL MACHINERY (continued)
Diebold, Inc.. . . . . . . . . . . . . . . . . . . 900 $ 23,400
Moog, Inc. - Class A*. . . . . . . . . . . . . . . 25 728
PSC, Inc.* . . . . . . . . . . . . . . . . . . . . 75 159
---------
72,041
---------
NURSING CARE FACILITIES - 0.04%
Beverly Enterprises, Inc.* . . . . . . . . . . . . 100 500
Manor Care, Inc.*. . . . . . . . . . . . . . . . . 75 1,252
---------
1,752
---------
PAPER & ALLIED PRODUCTS - 0.03%
Smurfit - Stone Container Corp.* . . . . . . . . . 99 1,337
---------
PRIMARY METAL INDUSTRIES - 0.37%
Intermet Corp. . . . . . . . . . . . . . . . . . . 75 563
Phelps Dodge Corp. . . . . . . . . . . . . . . . . 300 14,025
Texas Industries, Inc. . . . . . . . . . . . . . . 150 3,497
---------
18,085
---------
RETAIL - 0.18%
Great Atlantic & Pacific Tea Company, Inc. . . . . 50 500
Hancock Fabrics, Inc.. . . . . . . . . . . . . . . 1,350 5,906
Omnicare, Inc. . . . . . . . . . . . . . . . . . . 100 1,750
Syms Corp.*. . . . . . . . . . . . . . . . . . . . 75 422
---------
8,578
---------
RUBBER & MISCELLANEOUS PLASTIC PRODUCTS - 0.00%
Applied Extrusion Technologies, Inc.*. . . . . . . 125 383
---------
SOCIAL SERVICES - 0.05%
American Retirement Corp. *. . . . . . . . . . . . 200 1,064
Emeritus Corp.*. . . . . . . . . . . . . . . . . . 50 75
Sunrise Assisted Living, Inc. *. . . . . . . . . . 50 1,169
---------
2,308
---------
SOFTWARE - 0.49%
Parametric Technology Corp.* . . . . . . . . . . . 1,900 23,394
Pharmacopeia, Inc.*. . . . . . . . . . . . . . . . 25 456
23,850
------
TECHNICAL INSTRUMENTS & SUPPLIES - 1.79%
Becton, Dickinson & Co.. . . . . . . . . . . . . . 825 27,637
Boston Scientific Corp.* . . . . . . . . . . . . . 50 797
Eastman Kodak Co.. . . . . . . . . . . . . . . . . 1,150 51,606
Getinge Industrier AB - B Shares (Sweden) (Note 7) 125 1,166
Med-Design Corp.*. . . . . . . . . . . . . . . . . 50 900
</TABLE>
The accompanying notes are an integral part of the financial statements.
6
<PAGE>
Investment Portfolio - October 31, 2000
<TABLE>
<CAPTION>
SHARES/PRINCIPAL VALUE
Defensive Series AMOUNT (NOTE 2)
--------------------------------------------------------- ----------------- ---------
<S> <C> <C>
TECHNICAL INSTRUMENTS & SUPPLIES (continued)
Sybron International Corp.* . . . . . . . . . . . . . . . 175 $ 4,331
---------
86,437
---------
TELECOMMUNICATION SERVICES - 0.38%
Sinclair Broadcast Group, Inc.* . . . . . . . . . . . . . 150 1,383
Telecomunicacoes Brasileiras S.A. (Telebras) -
ADR (Brazil) (Note 7) . . . . . . . . . . . . . . . . 230 16,848
---------
18,231
---------
TESTING LABORATORIES - 0.08%
Paradigm Geophysical Ltd.* (Israel) . . . . . . . . . . . 700 3,763
---------
TEXTILE MILL PRODUCTS - 0.08%
Albany International Corp. - Class A. . . . . . . . . . . 358 3,848
---------
TRANSPORTATION - 2.04%
EQUIPMENT - 0.36%
Northrop Grumman Corp.. . . . . . . . . . . . . . . . 200 16,800
Wabtec Corp.. . . . . . . . . . . . . . . . . . . . . 50 506
---------
17,306
---------
RAILROAD - 1.41%
Burlington North Santa Fe Corp. . . . . . . . . . . . 800 21,250
Canadian National Railway Co. - ADR (Canada) (Note 7) 1,450 45,675
Kansas City Southern Industries, Inc. . . . . . . . . 175 1,520
---------
68,445
---------
WATER - 0.27%
Trico Marine Services, Inc.*. . . . . . . . . . . . . 775 12,884
---------
98,635
---------
TOTAL COMMON STOCK
(Identified Cost $763,892). . . . . . . . . . . . . . 795,989
---------
U.S. TREASURY SECURITIES - 73.36%
U.S. TREASURY BONDS - 6.05%
U.S. Treasury Bond, 6.875%, 8/15/2025. . . . . . . . $ 210,000 233,901
U.S. Treasury Bond, 6.50%, 11/15/2026 . . . . . . . . 55,000 58,814
---------
TOTAL U.S. TREASURY BONDS
(Identified Cost $282,254). . . . . . . . . . . . . . 292,715
---------
U.S. TREASURY NOTES - 67.31%
U.S. Treasury Notes, 6.375%, 9/30/2001. . . . . . . . 25,000 25,012
U.S. Treasury Notes, 7.50%, 11/15/2001. . . . . . . . 50,000 50,584
U.S. Treasury Notes, 6.25%, 6/30/2002 . . . . . . . . 150,000 150,475
</TABLE>
The accompanying notes are an integral part of the financial statements.
7
<PAGE>
Investment Portfolio - October 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT VALUE
Defensive Series /SHARES (NOTE 2)
------------------------------------------- ----------------- ---------
<S> <C> <C>
U.S. TREASURY NOTES (continued)
U.S. Treasury Notes, 5.875%, 9/30/2002. $ 275,000 $274,619
U.S. Treasury Notes, 6.25%, 2/15/2003 . 215,000 216,417
U.S. Treasury Notes, 5.50%, 3/31/2003 . 190,000 188,133
U.S. Treasury Notes, 5.875%, 2/15/2004. 75,000 74,982
U.S. Treasury Notes, 6.00%, 8/15/2004 . 500,000 502,037
U.S. Treasury Notes, 7.25%, 8/15/2004 . 65,000 68,016
U.S. Treasury Notes, 6.50%, 5/15/2005 . 625,000 641,941
U.S. Treasury Notes, 6.625%, 5/15/2007. 300,000 312,294
U.S. Treasury Notes, 6.125%, 8/15/2007. 5,000 5,071
U.S. Treasury Notes, 5.50%, 2/15/2008 . 240,000 234,975
U.S. Treasury Notes, 4.75%, 11/15/2008. 550,000 511,794
---------
TOTAL U.S. TREASURY NOTES
(Identified Cost $3,213,418). . . . . . 3,256,350
---------
TOTAL U.S. TREASURY SECURITIES
(Identified Cost $3,495,672). . . . . . 3,549,065
---------
U.S. GOVERNMENT AGENCIES - 8.19%
MORTGAGE BACKED SECURITIES
GNMA, Pool #365225, 9.00%, 11/15/2024 . 19,899 20,711
GNMA, Pool #398655, 6.50%, 5/15/2026. 36,092 35,015
GNMA, Pool #452826, 9.00%, 1/15/2028. 41,225 42,749
GNMA, Pool #460820, 6.00%, 6/15/2028. 91,855 86,752
GNMA, Pool #458983, 6.00%, 1/15/2029. 223,880 211,113
---------
TOTAL U.S. GOVERNMENT AGENCIES
(Identified Cost $395,203). . . . . . . 396,340
---------
SHORT-TERM INVESTMENTS - 0.79%
Dreyfus Treasury Cash Management Fund
(Identified Cost $38,097) . . . . . . . 38,097 38,097
---------
TOTAL INVESTMENTS - 98.79%
(Identified Cost $4,692,864). . . . . . 4,779,491
OTHER ASSETS, LESS LIABILITIES - 1.21%. . . 58,510
---------
NET ASSETS - 100% . . . . . . . . . . . . . $4,838,001
==========
</TABLE>
*Non-income producing security
ADR = American Depository Receipt
FEDERAL TAX INFORMATION:
At October 31, 2000, the net unrealized appreciation based on identified cost
for federal income tax purposes of $4,700,130 was as follows:
Unrealized appreciation $166,301
Unrealized depreciation (86,940)
---------
UNREALIZED APPRECIATION - NET $ 79,361
=========
The accompanying notes are an integral part of the financial statements.
8
<PAGE>
Statement of Assets and Liabilities - Defensive Series
<TABLE>
<CAPTION>
OCTOBER 31, 2000
ASSETS:
<S> <C>
Investments, at value (identified cost $4,692,864)(Note 2) . $4,779,491
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,035
Interest receivable. . . . . . . . . . . . . . . . . . . . . 68,560
Receivable for securities sold . . . . . . . . . . . . . . . 9,257
Dividends receivable . . . . . . . . . . . . . . . . . . . . 701
FOREIGN TAX RECLAIM RECEIVABLE . . . . . . . . . . . . . . . 71
Receivable from investment advisor (Note 3). . . . . . . . . 20,790
----------
TOTAL ASSETS . . . . . . . . . . . . . . . . . . . . . . . . 4,880,905
----------
LIABILITIES:
Accrued directors' fees (Note 3) . . . . . . . . . . . . . . 9,338
Accrued fund accounting fees (Note 3). . . . . . . . . . . . 3,417
Transfer agent fees payable (Note 3) . . . . . . . . . . . . 1,156
Audit fee payable. . . . . . . . . . . . . . . . . . . . . . 11,535
Registration and filing fees payable . . . . . . . . . . . . 10,154
Custodian fees payable . . . . . . . . . . . . . . . . . . . 1,190
Payable for securities purchased . . . . . . . . . . . . . . 480
Other payables and accrued expenses. . . . . . . . . . . . . 5,634
----------
TOTAL LIABILITIES. . . . . . . . . . . . . . . . . . . . . . 42,904
----------
TOTAL NET ASSETS . . . . . . . . . . . . . . . . . . . . . . $4,838,001
==========
NET ASSETS CONSIST OF:
Capital stock. . . . . . . . . . . . . . . . . . . . . . . . $ 4,336
Additional paid-in-capital . . . . . . . . . . . . . . . . . 4,503,112
Undistributed net investment income. . . . . . . . . . . . . 116,448
Accumulated net realized gain on investments . . . . . . . . 127,509
Net unrealized appreciation on investments and other assets
and liabilities . . . . . . . . . . . . . . . . . . . . . 86,596
----------
TOTAL NET ASSETS . . . . . . . . . . . . . . . . . . . . . . $4,838,001
==========
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE - CLASS A
($4,838,001/433,566 shares) . . . . . . . . . . . . . . . $ 11.16
==========
</TABLE>
The accompanying notes are an integral part of the financial statements.
9
<PAGE>
Statement of Operations - Defensive Series
<TABLE>
<CAPTION>
FOR THE YEAR ENDED OCTOBER 31, 2000
INVESTMENT INCOME:
<S> <C>
Interest . . . . . . . . . . . . . . . . . . . . . $231,112
Dividends (net of foreign tax withheld, $528). . . 15,821
---------
Total Investment Income. . . . . . . . . . . . . . 246,933
---------
EXPENSES:
Management fees (Note 3) . . . . . . . . . . . . . 38,528
Fund accounting fees (Note 3). . . . . . . . . . . 30,304
Directors' fees (Note 3) . . . . . . . . . . . . . 7,221
Transfer agent fees (Note 3) . . . . . . . . . . . 1,156
Registration and filing fees . . . . . . . . . . . 10,028
Audit fee. . . . . . . . . . . . . . . . . . . . . 9,527
Custodian fee. . . . . . . . . . . . . . . . . . . 6,017
Miscellaneous. . . . . . . . . . . . . . . . . . . 4,695
---------
Total Expenses . . . . . . . . . . . . . . . . . . 107,476
Less Reduction of Expenses (Note 3). . . . . . . . (59,318)
---------
Net Expenses . . . . . . . . . . . . . . . . . . . 48,158
---------
NET INVESTMENT INCOME. . . . . . . . . . . . . . . 198,775
---------
REALIZED AND UNREALIZED GAIN
ON INVESTMENTS:
Net realized gain on investments and other assets
and liabilities . . . . . . . . . . . . . . . . 133,723
Net change in unrealized appreciation on
investments and other assets and liabilities . 159,623
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS. . . . . . . . . . . . . . . . . 293,346
---------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS . . . . . . . . . . . . . . . . $492,121
=========
</TABLE>
The accompanying notes are an integral part of the financial statements.
10
<PAGE>
<TABLE>
<CAPTION>
Statements of Changes in Net Assets - Defensive Series
FOR THE FOR THE
YEAR ENDED YEAR ENDED
10/31/00 10/31/99
------------ ------------
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
<S> <C> <C>
Net investment income . . . . . . . . . . . . . . . . . $ 198,775 $ 235,418
Net realized gain on investments. . . . . . . . . . . . 133,723 39,396
Net change in unrealized appreciation (depreciation)
on investments. . . . . . . . . . . . . . . . . . . 159,623 (154,121)
------------ ------------
Net increase from operations. . . . . . . . . . . . . . 492,121 120,693
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 2):
From net investment income. . . . . . . . . . . . . . . (194,531) (212,396)
From net realized gain on investments . . . . . . . . . (42,821) (20,762)
------------ ------------
Total distribution to shareholders. . . . . . . . . . . (237,352) (233,158)
------------ ------------
CAPITAL STOCK ISSUED AND REPURCHASED:
Net decrease from capital share
transactions (Note 5). . . . . . . . . . . . . . . . (253,526) (783,936)
------------ ------------
Net increase (decrease) in net assets . . . . . . . . . 1,243 (896,401)
NET ASSETS:
Beginning of year . . . . . . . . . . . . . . . . . . . 4,836,758 5,733,159
------------ ------------
END OF YEAR (including undistributed net investment
Income of $116,448 and $117,154, respectively). . . . . $ 4,838,001 $ 4,836,758
============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
11
<PAGE>
<TABLE>
<CAPTION>
Financial Highlights - Defensive Series
FOR THE YEARS ENDED
10/31/00 10/31/99 10/31/98 10/31/97
--------------------- ---------- ---------- ----------
Per share data (for a share outstanding throughout each period):
<S> <C> <C> <C> <C>
NET ASSET VALUE - BEGINNING OF PERIOD . . . . . . . . . . . . . . $ 10.62 $ 10.85 $ 10.71 $ 10.29
--------------------- ---------- ---------- ----------
Income from investment operations:
Net investment income* . . . . . . . . . . . . . . . . . . . . 0.46 0.46 0.35 0.42
Net realized and unrealized gain on
Investments. . . . . . . . . . . . . . . . . . . . . . . . . . 0.62 (0.27) 0.32 0.45
--------------------- ---------- ---------- ----------
Total from investment operations. . . . . . . . . . . . . . . . . 1.08 0.19 0.67 0.87
--------------------- ---------- ---------- ----------
Less distributions to shareholders:
From net investment income . . . . . . . . . . . . . . . . . . (0.44) (0.38) (0.35) (0.38)
From net realized gain on investments. . . . . . . . . . . . . (0.10) (0.04) (0.18) (0.07)
--------------------- ---------- ---------- ----------
Total distribution, to shareholders . . . . . . . . . . . . . . . (0.54) (0.42) (0.53) (0.45)
--------------------- ---------- ---------- ----------
NET ASSET VALUE - END OF PERIOD . . . . . . . . . . . . . . . . . $ 11.16 $ 10.62 $ 10.85 $ 10.71
===================== ========== ========== ==========
Total return1 . . . . . . . . . . . . . . . . . . . . . . . . . . 10.62% 1.75% 6.54% 8.74%
Ratios (to average net assets) / Supplemental Data:
Expenses* . . . . . . . . . . . . . . . . . . . . . . . . . . 1.00% 1.00% 1.00% 1.00%
Net investment income*. . . . . . . . . . . . . . . . . . . . 4.13% 4.08% 4.20% 4.45%
Portfolio turnover. . . . . . . . . . . . . . . . . . . . . . . . 33% 33% 15% 60%
NET ASSETS - END OF PERIOD (000's omitted). . . . . . . . . . . . $ 4,838 $ 4,837 $ 5,733 $ 1,764
===================== ========== ========== ==========
Financial Highlights - Defensive Series
10/31/96
----------
Per share data (for a share outstanding throughout each period):
<S> <C>
NET ASSET VALUE - BEGINNING OF PERIOD . . . . . . . . . . . . . . $ 10.00
----------
Income from investment operations:
Net investment income* . . . . . . . . . . . . . . . . . . . . 0.35
Net realized and unrealized gain on
Investments. . . . . . . . . . . . . . . . . . . . . . . . . . 0.14
----------
Total from investment operations. . . . . . . . . . . . . . . . . 0.49
----------
Less distributions to shareholders:
From net investment income . . . . . . . . . . . . . . . . . . (0.20)
From net realized gain on investments. . . . . . . . . . . . . --
----------
Total distribution, to shareholders . . . . . . . . . . . . . . . (0.20)
----------
NET ASSET VALUE - END OF PERIOD . . . . . . . . . . . . . . . . . $ 10.29
==========
Total return1 . . . . . . . . . . . . . . . . . . . . . . . . . . 4.94%
Ratios (to average net assets) / Supplemental Data:
Expenses* . . . . . . . . . . . . . . . . . . . . . . . . . . 1.00%
Net investment income*. . . . . . . . . . . . . . . . . . . . 4.26%
Portfolio turnover. . . . . . . . . . . . . . . . . . . . . . . . 30%
NET ASSETS - END OF PERIOD (000's omitted). . . . . . . . . . . . $ 745
==========
</TABLE>
*The investment advisor did not impose all or a portion of its management fee
and in some periods paid a portion of the Series' expenses. If these expenses
had been incurred by the Series, and had 1996 expenses been limited to that
allowed by state securities law, the net investment income per share and the
ratios would have been as follows:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Net investment income . . . . . $0.32 $0.40 $0.29 $0.27 $0.23
Ratios (to average net assets):
Expenses . . . . . . . . . . 2.23% 1.57% 1.73% 2.59% 2.50%
Net investment income. . . . 2.90% 3.51% 3.47% 2.86% 2.76%
</TABLE>
1 Represents aggregate total return for the period indicated.
The accompanying notes are an integral part of the financial statements.
12
<PAGE>
Performance Update as of October 31, 2000
Exeter Fund, Inc. - Blended Asset Series I
Total Return
Through Growth of $10,000 Average
10/31/00 Investment Cumulative Annual
One Year $11,612 16.12% 16.12%
Five Year $15,769 57.69% 9.53%
Inception 1 $18,634 86.34% 9.12%
Lehman Brothers Intermediate Bond Index
Total Return
Through Growth of $10,000 Average
10/31/00 Investment Cumulative Annual
One Year $10,646 6.46% 6.46%
Five Year $13,342 33.42% 5.93%
Inception 1 $14,788 47.88% 5.64%
30 - 70 Blended Index
Total Return
Through Growth of $10,000 Average
10/31/00 Investment Cumulative Annual
One Year $10,659 6.59% 6.59%
Five Year $16,630 66.30% 10.70%
Inception 1 $19,507 95.07% 9.82%
The value of a $10,000 investment in the Exeter Fund, Inc. - Blended
Asset Series I from its inception (9/15/93)to present (10/31/00) as compared to
the Lehman Brothers Intermediate Bond Index and a 30-70 Blended Index. 2
[graphic]
[line chart]
Data for line chart to follow:
<TABLE>
<CAPTION>
Lehman Brothers
Exeter Fund, Inc. Intermediate 30-70 Blended
Date Blended Asset Series I Bond Index Index
<S> <C> <C> <C>
09/15/1993 10,000 10,000 10,000
12/31/1993 10,092 10,032 10,081
12/31/1994 10,012 9,838 9,986
12/31/1995 12,123 11,347 12,151
10/31/1996 12,806 11,728 13,040
10/31/1997 14,472 12,606 14,965
10/31/1998 15,383 13,755 16,937
10/31/1999 16,048 13,891 18,300
10/31/2000 18,634 14,788 19,507
</TABLE>
1 Performance numbers for the Series and Indices are calculated from September
15, 1993, the Series' inception date. The Series' performance is historical and
may not be indicative of future results.
2 The Lehman Brothers Intermediate Bond Index is a market value weighted measure
of approximately 3,300 corporate and government securities. The Index is
comprised of investment grade securities with maturities greater than one year
but less than ten years. The 30-70 Blended Index is 30% Standard & Poor's
(S&P) 500 Total Return Index and 70% Lehman Brothers Intermediate Bond Index.
The S&P 500 Total Return Index is an unmanaged capitalization-weighted measure
of 500 widely held common stocks listed on the New York Stock Exchange, American
Stock Exchange, and the Over-the-Counter market. Both Indices' returns assume
reinvestment of income and, unlike Series returns, do not reflect any fees or
expenses.
13
<PAGE>
Investment Portfolio - October 31, 2000
<TABLE>
<CAPTION>
VALUE
Blended Asset Series I SHARES (NOTE 2)
---------------------------------------------------------- --------- ---------
COMMON STOCK - 46.61%
<S> <C> <C>
AGRICULTURAL PRODUCTION - 0.07%
Sylvan, Inc.*. . . . . . . . . . . . . . . . . . . . . . . 1,250 $ 11,875
---------
APPAREL - 1.71%
Adidas-Salomon AG (Germany) (Note 7) . . . . . . . . . . . 6,700 308,098
---------
CHEMICAL & ALLIED PRODUCTS - 9.51%
BIOLOGICAL PRODUCTS - 3.43%
Cypress Bioscience, Inc.*. . . . . . . . . . . . . . . 5,925 7,777
Human Genome Sciences, Inc.* . . . . . . . . . . . . . 50 4,420
Millennium Pharmaceuticals, Inc.*. . . . . . . . . . . 150 10,884
Sigma-Aldrich Corp.. . . . . . . . . . . . . . . . . . 16,675 596,131
---------
619,212
---------
PHARMACEUTICAL PREPARATIONS - 2.87%
Abbott Laboratories. . . . . . . . . . . . . . . . . . 275 14,523
American Home Products Corp. . . . . . . . . . . . . . 300 19,050
Bausch & Lomb, Inc.. . . . . . . . . . . . . . . . . . 250 9,641
Bristol-Myers Squibb Co. . . . . . . . . . . . . . . . 400 24,375
Merck KgaA (Germany) (Note 7). . . . . . . . . . . . . 350 13,336
Pharmacia Corp.. . . . . . . . . . . . . . . . . . . . 7,550 415,250
Schering-Plough Corp.. . . . . . . . . . . . . . . . . 425 21,967
---------
518,142
---------
PLASTIC MATERIALS - 3.21%
Eastman Chemical Co. . . . . . . . . . . . . . . . . . 13,275 569,166
PolyOne Corp.. . . . . . . . . . . . . . . . . . . . . 1,225 9,647
---------
578,813
---------
1,716,167
---------
COMMERCIAL PHYSICAL & BIOLOGICAL RESEARCH - 0.10%
Monsanto Co.*. . . . . . . . . . . . . . . . . . . . . . . 700 17,851
---------
COMPUTER INTEGRATED SYSTEMS & DESIGN - 0.08%
IDX Systems Corp.* . . . . . . . . . . . . . . . . . . . . 425 13,600
---------
CRUDE PETROLEUM & NATURAL GAS - 3.35%
Gulf Canada Resouces, Ltd - ADR* (Canada) (Note 7) . . . . 88,150 374,637
Petroleo Brasileiro SA (Petrobras) - ADR (Brazil) (Note 7) 8,200 217,460
Stolt Offshore SA* (United Kingdom) (Note 7) . . . . . . . 1,100 13,131
---------
605,228
---------
</TABLE>
The accompanying notes are an integral part of the financial statements.
14
<PAGE>
Investment Portfolio - October 31, 2000
<TABLE>
<CAPTION>
VALUE
Blended Asset Series I SHARES (NOTE 2)
------------------------------------------------ --------- ---------
<S> <C> <C>
ELECTRIC, GAS & SANITARY SERVICES - 2.23%
Allegheny Energy, Inc. . . . . . . . . . . . . . 2,475 $101,320
CH Energy Group, Inc.. . . . . . . . . . . . . . 325 12,797
Cinergy Corp.. . . . . . . . . . . . . . . . . . 2,950 90,344
Conectiv, Inc. . . . . . . . . . . . . . . . . . 5,075 91,033
FirstEnergy Corp.. . . . . . . . . . . . . . . . 4,100 106,087
---------
401,581
---------
ELECTRONICS & ELECTRICAL EQUIPMENT - 3.13%
The Carbide/Graphite Group, Inc.*. . . . . . . . 1,175 2,937
Raytheon Co. - Class A . . . . . . . . . . . . . 6,200 198,400
Texas Instruments, Inc.. . . . . . . . . . . . . 7,300 358,156
Veramark Technologies, Inc.* . . . . . . . . . . 2,025 5,569
---------
565,062
---------
FABRICATED METAL PRODUCTS - 0.78%
Lockheed Martin Corp.. . . . . . . . . . . . . . 3,675 131,749
Norddeutsche Affinerie AG (Germany) (Note 7) . . 925 9,401
---------
141,150
---------
FOOD & KINDRED PRODUCTS - 7.28%
Diageo plc - ADR (United Kingdom) (Note 7) . . . 7,800 293,475
Earthgrains Co.. . . . . . . . . . . . . . . . . 575 11,644
Flowers Industries, Inc. . . . . . . . . . . . . 400 6,150
H.J. Heinz Co. . . . . . . . . . . . . . . . . . 13,100 549,381
Unilever plc - ADR (Note 7). . . . . . . . . . . 16,232 452,467
---------
1,313,117
---------
FRESH FRUIT & VEGETABLES - 0.04%
Fresh Del Monte Produce, Inc.* . . . . . . . . . 1,725 6,792
---------
FURNITURE & FIXTURES - 0.07%
Hillenbrand Industries, Inc. . . . . . . . . . . 275 12,719
---------
GENERAL SURGICAL & MEDICAL HOSPITALS - 0.45%
Apria Healthcare Group, Inc.*. . . . . . . . . . 300 6,000
HCA-The Healthcare Co. . . . . . . . . . . . . . 475 18,970
Healthsouth Corp.* . . . . . . . . . . . . . . . 2,600 31,200
Lincare Holdings, Inc.*. . . . . . . . . . . . . 150 6,309
Tenet Healthcare Corp.*. . . . . . . . . . . . . 500 19,656
---------
82,135
---------
GLASS PRODUCTS - 0.15%
Libbey, Inc. . . . . . . . . . . . . . . . . . . 500 13,625
Waterford Wedgwood plc (United Kingdom) (Note 7) 11,000 13,426
---------
27,051
---------
</TABLE>
The accompanying notes are an integral part of the financial statements.
15
<PAGE>
Investment Portfolio - October 31, 2000
<TABLE>
<CAPTION>
VALUE
Blended Asset Series I SHARES (NOTE 2)
--------------------------------------------------------- ------- ---------
<S> <C> <C>
INDUSTRIAL & COMMERCIAL MACHINERY - 4.26%
Baker Hughes, Inc.. . . . . . . . . . . . . . . . . . . . 3,000 $103,125
Bell & Howell Co.*. . . . . . . . . . . . . . . . . . . . 625 11,875
Compaq Computer Corp. . . . . . . . . . . . . . . . . . . 12,300 374,043
Diebold, Inc. . . . . . . . . . . . . . . . . . . . . . . 10,300 267,800
Moog, Inc. - Class A* . . . . . . . . . . . . . . . . . . 300 8,737
PSC, Inc.*. . . . . . . . . . . . . . . . . . . . . . . . 975 2,072
---------
767,652
---------
MOTION PICTURE PRODUCTION - 0.11%
Alliance Atlantis Communications Corp.* (Canada) (Note 7) 1,300 19,578
---------
NURSING CARE FACILITIES - 0.10%
Beverly Enterprises, Inc.*. . . . . . . . . . . . . . . . 1,300 6,500
Manor Care, Inc*. . . . . . . . . . . . . . . . . . . . . 675 11,264
---------
17,764
---------
PAPER & ALLIED PRODUCTS - 0.13%
Smurfit-Stone Container Corp.*. . . . . . . . . . . . . . 1,782 24,057
---------
PRIMARY METAL INDUSTRIES - 1.24%
Intermet Corp.. . . . . . . . . . . . . . . . . . . . . . 1,100 8,250
Phelps Dodge Corp.. . . . . . . . . . . . . . . . . . . . 4,200 196,350
Texas Industries, Inc.. . . . . . . . . . . . . . . . . . 800 18,650
---------
223,250
---------
RETAIL - 0.24%
Great Atlantic & Pacific Tea Company, Inc.. . . . . . . . 600 6,000
Hancock Fabrics, Inc. . . . . . . . . . . . . . . . . . . 2,625 11,484
Omnicare, Inc.. . . . . . . . . . . . . . . . . . . . . . 1,125 19,688
Syms Corp.* . . . . . . . . . . . . . . . . . . . . . . . 1,000 5,625
---------
42,797
---------
RUBBER & MISCELLANEOUS PLASTIC PRODUCTS - 0.03%
Applied Extrusion Technologies, Inc.* . . . . . . . . . . 1,800 5,513
---------
SOCIAL SERVICES - 0.18%
American Retirement Corp.*. . . . . . . . . . . . . . . . 2,700 14,364
Emeritus Corp.* . . . . . . . . . . . . . . . . . . . . . 675 1,012
Sunrise Assisted Living, Inc.*. . . . . . . . . . . . . . 750 17,531
---------
32,907
---------
SOFTWARE - 1.25%
Parametric Technology Corp.*. . . . . . . . . . . . . . . 18,100 222,856
Pharmacopeia, Inc.* . . . . . . . . . . . . . . . . . . . 150 2,738
---------
225,594
---------
</TABLE>
The accompanying notes are an integral part of the financial statements.
16
<PAGE>
Investment Portfolio - October 31, 2000
<TABLE>
<CAPTION>
VALUE
Blended Asset Series I SHARES (NOTE 2)
--------------------------------------------------------- --------- --------
<S> <C> <C>
TECHNICAL INSTRUMENTS & SUPPLIES - 3.77%
Becton, Dickinson & Co. . . . . . . . . . . . . . . . . . 1,425 47,738
Boston Scientific Corp.*. . . . . . . . . . . . . . . . . 425 6,773
Eastman Kodak Co. . . . . . . . . . . . . . . . . . . . . 12,825 575,522
Getinge Industrier AB-B Shares (Sweden) (Note 7). . . . . 1,175 10,965
Med-Design Corp.* . . . . . . . . . . . . . . . . . . . . 450 8,100
Sybron International Corp.* . . . . . . . . . . . . . . . 1,275 31,556
--------
680,654
--------
TELECOMMUNICATION SERVICES - 1.19%
Sinclair Broadcast Group, Inc.* . . . . . . . . . . . . . 1,700 15,672
Telecomunicacoes Brasileiras
S.A. (Telebras ) - ADR (Brazil) (Note 7). . . . . . . 2,710 198,508
--------
214,180
--------
TESTING LABORATORIES - 0.07%
Paradigm Geophysical Ltd.* (Israel) . . . . . . . . . . . 2,350 12,631
--------
TEXTILE MILL PRODUCTS - 0.07%
Albany International Corp. - Class A* . . . . . . . . . . 1,228 13,201
--------
TRANSPORTATION- 5.02%
EQUIPMENT - 1.09%
Northrop Grumman Corp.. . . . . . . . . . . . . . . . 2,250 189,000
Wabtec Corp.. . . . . . . . . . . . . . . . . . . . . 750 7,594
--------
196,594
--------
RAILROAD - 3.69%
Burlington Northern Santa Fe Corp.. . . . . . . . . . 9,600 255,000
Canadian National Railway Co. - ADR (Canada) (Note 7) 12,525 394,537
Kansas City Southern Industries, Inc. . . . . . . . . 1,875 16,289
--------
665,826
--------
WATER - 0.24%
Trico Marine Services, Inc.*. . . . . . . . . . . . . 2,575 42,809
--------
905,229
--------
TOTAL COMMON STOCK
(Identified Cost $8,326,539). . . . . . . . . . . . . 8,407,433
--------
</TABLE>
The accompanying notes are an integral part of the financial statements.
17
<PAGE>
Investment Portfolio - October 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL VALUE
Blended Asset Series I AMOUNT (NOTE 2)
------------------------------------------- ---------- -----------
<S> <C> <C>
U.S. TREASURY SECURITIES - 44.95%
U.S. TREASURY BONDS - 17.45%
U.S. Treasury Bond, 7.25%, 8/15/2022. . $ 390,000 $ 448,586
U.S. Treasury Bond, 7.50%, 11/15/2024 . 2,135,000 2,541,517
U.S. Treasury Bond, 6.50%, 11/15/2026 . 135,000 144,360
U.S. Treasury Bond, 5.50%, 8/15/2028. . 15,000 14,117
-----------
TOTAL U.S. TREASURY BONDS
(Identified Cost $2,880,691). . . . . . 3,148,580
-----------
U.S. TREASURY NOTES - 27.50%
U.S. Treasury Note, 6.625%, 7/31/2001 . 950,000 951,900
U.S. Treasury Note, 5.500%, 3/31/2003 . 1,445,000 1,430,804
U.S. Treasury Note, 5.375%, 6/30/2003 . 750,000 740,524
U.S. Treasury Note, 4.250%, 11/15/2003. 60,000 57,285
U.S. Treasury Note, 5.250%, 5/15/2004 . 10,000 9,800
U.S. Treasury Note, 6.00%, 8/15/2004. . 1,400,000 1,405,704
U.S. Treasury Note, 6.50%, 5/15/2005. . 355,000 364,622
-----------
TOTAL U.S. TREASURY NOTES
(Identified Cost $4,922,013). . . . . . 4,960,639
-----------
TOTAL U.S. TREASURY SECURITIES
(Identified Cost $7,802,704). . . . . . 8,109,219
-----------
U.S. GOVERNMENT AGENCIES - 3.52%
MORTGAGE BACKED SECURITIES - 0.23%
GNMA, Pool #286310, 9.00%, 2/15/2020. . 10,217 10,678
GNMA, Pool #288873, 9.50%, 8/15/2020. . 1,731 1,818
GNMA, Pool #385753, 9.00%, 7/15/2024. . 27,489 28,611
-----------
TOTAL MORTGAGED BACKED SECURITIES
(Identified Cost $40,657) . . . . . . . 41,107
-----------
OTHER AGENCIES - 3.29%
Federal National Mortgage Association
Note, 5.625%, 3/15/2001 . . . . . . . 10,000 9,961
Federal National Mortgage Association
Note, 5.75%, 2/15/2008. . . . . . . . 25,000 23,782
Federal National Mortgage Association
Note, 6.25%, 5/15/2029. . . . . . . . 600,000 560,204
-----------
TOTAL OTHER AGENCIES
(Identified Cost $574,591). . . . . . . 593,947
-----------
TOTAL U.S. GOVERNMENT AGENCIES
(Identified Cost $615,248). . . . . . . 635,054
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
18
<PAGE>
Investment Portfolio - October 31, 2000
<TABLE>
<CAPTION>
VALUE
Blended Asset Series I SHARES (NOTE 2)
-------------------------------------- ----------- ---------
<S> <C> <C>
SHORT-TERM INVESTMENTS - 3.87%
Dreyfus Treasury Cash Management Fund
(Identified Cost $698,560) . . . . 698,560 $698,560
---------
TOTAL INVESTMENTS - 98.95%
(Identified Cost $17,443,051). . . 17,850,266
OTHER ASSETS, LESS LIABILITIES - 1.05% 189,891
---------
NET ASSETS - 100%. . . . . . . . . . . $18,040,157
===========
</TABLE>
*Non-income producing security
ADR = American Depository Receipt
Federal Tax Information:
At October 31, 2000, the net unrealized appreciation based on identified cost
for federal income tax purposes of $17,445,464 was as follows:
Unrealized appreciation $1,470,025
Unrealized depreciation (1,065,223)
-----------
UNREALIZED APPRECIATION - NET $404,802
===========
The accompanying notes are an integral part of the financial statements.
19
<PAGE>
Statement of Assets and Liabilities - Blended Asset Series I
<TABLE>
<CAPTION>
OCTOBER 31, 2000
ASSETS:
<S> <C>
Investments, at value (identified cost $17,443,051)(Note 2) $17,850,266
Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,270
Foreign currency, at value (cost $6,350). . . . . . . . . . 5,923
Interest receivable . . . . . . . . . . . . . . . . . . . . 174,230
Receivable for securities sold. . . . . . . . . . . . . . . 74,703
Dividends receivable. . . . . . . . . . . . . . . . . . . . 8,899
Foreign tax reclaims receivable . . . . . . . . . . . . . . 989
-----------
TOTAL ASSETS. . . . . . . . . . . . . . . . . . . . . . . . 18,124,280
-----------
LIABILITIES:
Accrued management fees (Note 3). . . . . . . . . . . . . . 36,375
Accrued directors' fees (Note 3). . . . . . . . . . . . . . 4,256
Accrued fund accounting fees (Note 3) . . . . . . . . . . . 3,521
Transfer agent fees payable (Note 3). . . . . . . . . . . . 366
Audit fee payable . . . . . . . . . . . . . . . . . . . . . 17,099
Payable for fund shares repurchased . . . . . . . . . . . . 4,089
Payable for securities purchased. . . . . . . . . . . . . . 3,836
Custodian fee payable . . . . . . . . . . . . . . . . . . . 3,442
Other payables and accrued expenses . . . . . . . . . . . . 11,139
-----------
TOTAL LIABILITIES . . . . . . . . . . . . . . . . . . . . . 84,123
-----------
TOTAL NET ASSETS. . . . . . . . . . . . . . . . . . . . . . $18,040,157
===========
NET ASSETS CONSIST OF:
Capital stock . . . . . . . . . . . . . . . . . . . . . . . $ 14,814
Additional paid-in-capital. . . . . . . . . . . . . . . . . 15,551,319
Undistributed net investment income . . . . . . . . . . . . 341,636
Accumulated net realized gain on investments and other
assets and liabilities . . . . . . . . . . . . . . . . 1,725,675
Net unrealized appreciation on investments and other
assets and liabilities . . . . . . . . . . . . . . . . 406,713
-----------
TOTAL NET ASSETS. . . . . . . . . . . . . . . . . . . . . . $18,040,157
===========
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE - CLASS A
($18,040,157/1,481,394 shares) . . . . . . . . . . . . . $ 12.18
===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
20
<PAGE>
Statement of Operations - Blended Asset Series I
<TABLE>
<CAPTION>
FOR THE YEAR ENDED OCTOBER 31, 2000
INVESTMENT INCOME:
<S> <C>
Interest. . . . . . . . . . . . . . . . . . . . . . . . . $ 743,741
Dividends (net of foreign tax withheld, $6,759) . . . . . 210,188
-----------
Total Investment Income . . . . . . . . . . . . . . . . . 953,929
-----------
EXPENSES:
Management fees (Note 3). . . . . . . . . . . . . . . . . 236,167
Fund accounting fees (Note 3) . . . . . . . . . . . . . . 30,304
Directors' fees (Note 3). . . . . . . . . . . . . . . . . 7,223
Transfer agent fees (Note 3). . . . . . . . . . . . . . . 5,667
Audit fee . . . . . . . . . . . . . . . . . . . . . . . . 17,547
Custodian fee . . . . . . . . . . . . . . . . . . . . . . 14,543
Miscellaneous . . . . . . . . . . . . . . . . . . . . . . 21,761
-----------
Total Expenses. . . . . . . . . . . . . . . . . . . . . . 333,212
Less Reduction of Expenses (Note 3) . . . . . . . . . . . (49,793)
-----------
Net Expenses. . . . . . . . . . . . . . . . . . . . . . . 283,419
-----------
NET INVESTMENT INCOME . . . . . . . . . . . . . . . . . . 670,510
-----------
REALIZED AND UNREALIZED GAIN
ON INVESTMENTS:
Net realized gain on investments and other assets
and liabilities . . . . . . . . . . . . . . . . . . . 2,145,957
Net change in unrealized depreciation on investments and
other assets and liabilities . . . . . . . . . . . . 687,286
-----------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS . . . . . . . . . . . . . . . . . . . . 2,833,243
-----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS. . . . . . . . . . . . . . . . . . . . $3,503,753
===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
21
<PAGE>
<TABLE>
<CAPTION>
Statements of Changes in Net Assets - Blended Asset Series I
FOR THE FOR THE
YEAR ENDED YEAR ENDED
10/31/00 10/31/99
------------- ------------
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
<S> <C> <C>
Net investment income . . . . . . . . . . . . . . . . . . . . $ 670,510 $ 994,885
Net realized gain on investments. . . . . . . . . . . . . . . 2,145,957 588,481
Net change in unrealized appreciation on investments. . . . . 687,286 22,061
------------- ------------
Net increase from operations. . . . . . . . . . . . . . . . . 3,503,753 1,605,427
------------- ------------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 2):
From net investment income. . . . . . . . . . . . . . . . . . (787,574) (970,289)
From net realized gain on investments . . . . . . . . . . . . (584,748) (1,849,031)
------------- ------------
Total distributions to shareholders . . . . . . . . . . . . . (1,372,322) (2,819,320)
------------- ------------
CAPITAL STOCK ISSUED AND REPURCHASED:
Net decrease from capital share
transactions (Note 5). . . . . . . . . . . . . . . . . . . (10,606,451) (4,562,147)
------------- ------------
Net decrease in net assets. . . . . . . . . . . . . . . . . . (8,475,020) (5,776,040)
NET ASSETS:
Beginning of year . . . . . . . . . . . . . . . . . . . . . . 26,515,177 32,291,217
------------- ------------
END OF YEAR (including undistributed net investment
income of $341,636 and $526,915, respectively). . . . . . . . $ 18,040,157 $26,515,177
============= ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
22
<PAGE>
<TABLE>
<CAPTION>
Financial Highlights - Blended Asset Series I
FOR THE
TEN
MONTHS
FOR THE YEARS ENDED ENDED
10/31/00 10/31/99 10/31/98 10/31/97 10/31/96
--------------------- ---------- ---------- ---------- ----------
Per share data (for a share outstanding
throughout each period):
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE - BEGINNING OF PERIOD . . . . . . . $ 11.07 $ 11.59 $ 11.97 $ 11.20 $ 10.72
--------------------- ---------- ---------- ---------- ----------
Income from investment operations:
Net investment income*. . . . . . . . . . . . . . 0.41 0.38 0.36 0.39 0.29
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . . . . . 1.30 0.22 0.35 1.01 0.31
--------------------- ---------- ---------- ---------- ----------
Total from investment operations . . . . . . . . . . 1.71 0.60 0.71 1.40 0.60
--------------------- ---------- ---------- ---------- ----------
Less distributions to shareholders:
From net investment income. . . . . . . . . . . . (0.35) (0.34) (0.33) (0.44) (0.09)
In excess of net investment income. . . . . . . . -- -- -- -- --
From net realized gain on investments . . . . . . (0.25) (0.78) (0.76) (0.19) (0.03)
--------------------- ---------- ---------- ---------- ----------
Total distributions to shareholders. . . . . . . . . (0.60) (1.12) (1.09) (0.63) (0.12)
--------------------- ---------- ---------- ---------- ----------
NET ASSET VALUE - END OF PERIOD. . . . . . . . . . . $ 12.18 $ 11.07 $ 11.59 $ 11.97 $ 11.20
===================== ========== ========== ========== ==========
Total return 1 . . . . . . . . . . . . . . . . . . . 16.12% 4.32% 6.29% 13.01% 5.64%
Ratios (to average net assets) / Supplemental Data:
Expenses * . . . . . . . . . . . . . . . . . . . 1.20% 1.20% 1.20% 1.20% 1.20%2
Net investment income *. . . . . . . . . . . . . 2.84% 3.09% 3.25% 3.39% 3.69%2
Portfolio turnover . . . . . . . . . . . . . . . . . 47% 45% 60% 50% 85%
NET ASSETS - END OF PERIOD (000'S OMITTED) . . . . . $ 18,040 $ 26,515 $ 32,291 $ 21,930 $ 17,794
===================== ========== ========== ========== ==========
Financial Highlights - Blended Asset Series I
For the
Year
Ended
12/31/95
----------
Per share data (for a share outstanding
throughout each period):
<S> <C>
NET ASSET VALUE - BEGINNING OF PERIOD . . . . . . . $ 9.72
----------
Income from investment operations:
Net investment income*. . . . . . . . . . . . . . 0.34
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . . . . . 1.70
----------
Total from investment operations . . . . . . . . . . 2.04
----------
Less distributions to shareholders:
From net investment income. . . . . . . . . . . . (0.34)
In excess of net investment income. . . . . . . . (0.01)
From net realized gain on investments . . . . . . (0.69)
----------
Total distributions to shareholders. . . . . . . . . (1.04)
----------
NET ASSET VALUE - END OF PERIOD. . . . . . . . . . . $ 10.72
==========
Total return 1 . . . . . . . . . . . . . . . . . . . 21.08%
Ratios (to average net assets) / Supplemental Data:
Expenses * . . . . . . . . . . . . . . . . . . . 1.20%
Net investment income *. . . . . . . . . . . . . 3.64%
Portfolio turnover . . . . . . . . . . . . . . . . . 72%
NET ASSETS - END OF PERIOD (000'S OMITTED) . . . . . $ 9,518
==========
</TABLE>
*The investment advisor did not impose all or a portion of its management fee
and in some periods paid a portion of the Series' expenses. If these expenses
had been incurred by the Series, the net investment income per share and the
ratios would be as follows:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Net investment income . . . . . $0.38 $0.38 $0.35 $0.39 $ 0.28 $0.31
Ratios (to average net assets):
Expenses . . . . . . . . . . 1.41% 1.23% 1.23% 1.24% 1.31%2 1.53%
Net investment income. . . . 2.63% 3.06% 3.22% 3.35% 3.58%2 3.31%
</TABLE>
1 Represents aggregate total return for the period indicated.
2 Annualized.
The accompanying notes are an integral part of the financial statements.
23
<PAGE>
Performance Update as of October 31, 2000
Exeter Fund, Inc. - Blended Asset Series II
Total Return
Through Growth of $10,000 Average
10/31/00 Investment Cumulative Annual
One Year $11,883 18.83% 18.83%
Five Year $18,105 81.05% 12.59%
Inception 1 $23,557 135.57% 12.90%
Merrill Lynch Corporate/Government Bond Index
Total Return
Through Growth of $10,000 Average
10/31/00 Investment Cumulative Annual
One Year $10,721 7.21% 7.21%
Five Year $13,469 34.69% 6.13%
Inception 1 $14,872 48.72% 5.78%
50-50 Blended Index
Total Return
Through Growth of $10,000 Average
10/31/00 Investment Cumulative Annual
One Year $10,549 5.49% 5.49%
Five Year $19,051 90.51% 13.74%
Inception 1 $23,204 132.04% 12.66%
Exeter Fund, Inc. - Blended Asset Series II from its inception (10/12/93) to
present (10/31/00) as compared to the Merrill Lynch Corporate/Government Bond
Index and a 50-50 Blended Index. 2
[graphic]
[line chart]
Data for line chart to follow:
<TABLE>
<CAPTION>
Exeter Fund, Inc. 50-50 Blended Merrill Lynch Corporate/
Date Blended Asset Series II Index Government Bond Index
<S> <C> <C> <C>
10/12/1993 10,000 10,000 10,000
12/31/1993 9,982 10,056 9,883
12/31/1994 10,333 9,978 9,561
12/31/1995 13,707 12,743 11,383
10/31/1996 15,078 13,978 11,625
10/31/1997 18,047 16,832 12,666
10/31/1998 17,947 19,525 13,975
10/31/1999 19,824 21,996 13,871
10/31/2000 23,557 23,204 14,872
</TABLE>
1 Performance numbers for the Series and Indices are calculated from October 12,
1993, the Series' inception date. The Series' performance is historical and may
not be indicative of future results.
2 The 50-50 Blended Index is 50% Standard & Poor's (S&P) 500 Total Return Index
and 50% Lehman Brothers Aggregate Bond Index. The S&P 500 Total Return Index is
an unmanaged capitalization-weighted measure of 500 widely held common stocks
listed on the New York Stock Exchange, American Stock Exchange, and the
Over-the-Counter market. The Lehman Brothers Aggregate Bond Index is a market
value weighted measure of approximately 5,600 corporate, government, and
mortgage backed securities. The Index is comprised of investment grade
securities with maturities greater than one year. The Merrill Lynch
Corporate/Government Bond Index is comprised of approximately 4,500 investment
grade corporate and government securities with maturities greater than one year.
The Indices' returns assume reinvestment of income and, unlike Sereis returns,
do not reflect any fees or expenses.
24
<PAGE>
Investment Portfolio - October 31, 2000
<TABLE>
<CAPTION>
VALUE
Blended Asset Series II SHARES (NOTE 2)
--------------------------------------------------- --------- -----------
COMMON STOCK - 54.57%
<S> <C> <C>
AGRICULTURAL PRODUCTION - 0.06%
Sylvan, Inc.* . . . . . . . . . . . . . . . . . . . 5,825 $ 55,338
-----------
APPAREL - 2.04%
Adidas-Salomon AG (Germany) (Note 7). . . . . . . . 39,800 1,830,193
-----------
CHEMICAL & ALLIED PRODUCTS - 10.58%
BIOLOGICAL PRODUCTS - 3.68%
Cypress Bioscience, Inc.* . . . . . . . . . . . 34,050 44,691
Human Genome Sciences, Inc.*. . . . . . . . . . 7,400 654,091
Millennium Pharmaceuticals, Inc.* . . . . . . . 6,550 475,284
Sigma-Aldrich Corp. . . . . . . . . . . . . . . 59,400 2,123,550
-----------
3,297,616
-----------
PHARMACEUTICAL PREPARATIONS - 3.55%
Abbott Laboratories . . . . . . . . . . . . . . 2,750 145,234
American Home Products Corp.. . . . . . . . . . 13,425 852,487
Bausch & Lomb, Inc. . . . . . . . . . . . . . . 3,250 125,328
Bristol-Myers Squibb Co.. . . . . . . . . . . . 3,250 198,047
Merck KGaA - (Germany) (Note 7) . . . . . . . . 3,625 138,118
Pharmacia Corp. . . . . . . . . . . . . . . . . 29,925 1,645,875
Schering-Plough Corp. . . . . . . . . . . . . . 1,525 78,823
-----------
3,183,912
-----------
PLASTIC MATERIALS - 3.35%
Eastman Chemical Co.. . . . . . . . . . . . . . 68,175 2,923,003
PolyOne Corp. . . . . . . . . . . . . . . . . . 9,950 78,356
-----------
3,001,359
-----------
9,482,887
-----------
COMMERCIAL PHYSICAL & BIOLOGICAL RESEARCH - 0.13%
Monsanto Co.* . . . . . . . . . . . . . . . . . . . 4,500 114,750
-----------
COMPUTER INTEGRATED SYSTEMS DESIGN - 0.21%
IDX Systems Corp.*. . . . . . . . . . . . . . . . . 1,375 44,000
Sabre Holdings, Corp.*. . . . . . . . . . . . . . . 2,125 71,055
Unisys Corp.* . . . . . . . . . . . . . . . . . . . 5,750 73,313
-----------
188,368
-----------
CRUDE PETROLEUM & NATURAL GAS - 3.55%
Gulf Canada Resources Ltd. - ADR* (Canada) (Note 7) 399,450 1,697,662
Petroleo Brasileiro S.A. (Petrobras) -
ADR (Brazil) (Note 7) . . . . . . . . . . . . . 53,800 1,426,749
Stolt Offshore S.A.* (United Kingdom) (Note 7). . . 4,950 59,091
-----------
3,183,502
-----------
</TABLE>
The accompanying notes are an in integral part of the financial statements.
25
<PAGE>
Investment Portfolio - October 31, 2000
<TABLE>
<CAPTION>
VALUE
Blended Asset Series II SHARES (NOTE 2)
---------------------------------------------- --------- -----------
<S> <C> <C>
ELECTRIC, GAS, & SANITARY SERVICES - 2.18%
Allegheny Energy, Inc. . . . . . . . . . . . . 9,300 $ 380,719
Ameren Corp. . . . . . . . . . . . . . . . . . 10,825 430,294
CH Energy Group, Inc.. . . . . . . . . . . . . 1,175 46,266
Cinergy Corp.. . . . . . . . . . . . . . . . . 13,000 398,125
Conectiv, Inc. . . . . . . . . . . . . . . . . 18,100 324,669
FirstEnergy Corp.. . . . . . . . . . . . . . . 14,425 373,247
-----------
1,953,320
-----------
ELECTRONICS & ELECTRICAL EQUIPMENT - 4.20%
Altera Corp.*. . . . . . . . . . . . . . . . . 10,725 439,055
Analog Devices, Inc.*. . . . . . . . . . . . . 2,500 162,500
Broadcom Corp.*. . . . . . . . . . . . . . . . 375 83,391
The Carbide/Graphite Group, Inc.*. . . . . . . 8,175 20,438
Intel Corp.. . . . . . . . . . . . . . . . . . 2,250 101,250
Linear Technology Corp.. . . . . . . . . . . . 600 38,738
Maxim Integrated Products, Inc.* . . . . . . . 1,450 96,153
Micron Technology, Inc.* . . . . . . . . . . . 500 17,375
Motorola, Inc. . . . . . . . . . . . . . . . . 2,625 65,461
PMC - Sierra, Inc.*. . . . . . . . . . . . . . 225 38,138
Raytheon Co. - Class A . . . . . . . . . . . . 22,525 720,800
Texas Instruments, Inc.. . . . . . . . . . . . 39,125 1,919,570
Veramark Technologies, Inc.* . . . . . . . . . 11,700 32,175
Xilinx, Inc.*. . . . . . . . . . . . . . . . . 475 34,408
-----------
3,769,452
-----------
FABRICATED METAL PRODUCTS - 1.05%
Lockheed Martin Corp.. . . . . . . . . . . . . 24,725 886,391
Norddeutsche Affinerie AG - (Germany) (Note 7) 5,225 53,103
-----------
939,494
-----------
FOOD & KINDRED PRODUCTS - 6.42%
Diageo plc - ADR (United Kingdom) (Note 7) . . 28,900 1,087,363
Earthgrains Co.. . . . . . . . . . . . . . . . 3,575 72,394
Flowers Industries, Inc. . . . . . . . . . . . 1,825 28,059
H.J. Heinz Co. . . . . . . . . . . . . . . . . 42,025 1,762,423
Unilever plc - ADR (United Kingdom) (Note 7) . 100,626 2,804,950
-----------
5,755,189
-----------
FRESH FRUIT & VEGETABLES- 0.05%
Fresh Del Monte Produce, Inc.* . . . . . . . . 10,575 41,639
-----------
FURNITURE & FIXTURES - 0.11%
Hillenbrand Industries, Inc. . . . . . . . . . 2,075 95,969
-----------
</TABLE>
The accompanying notes are an in integral part of the financial statements.
26
<PAGE>
Investment Portfolio - October 31, 2000
<TABLE>
<CAPTION>
VALUE
Blended Asset Series II SHARES (NOTE 2)
-------------------------------------------------------- --------- -----------
<S> <C> <C>
GLASS PRODUCTS - 0.17%
Libbey, Inc. . . . . . . . . . . . . . . . . . . . . . . 2,750 $ 74,937
Waterford Wedgwood plc (United Kingdom) (Note 7) . . . . 64,000 78,114
-----------
153,051
-----------
GENERAL SURGICAL & MEDICAL HOSPITALS - 0.36%
Apria Healthcare Group, Inc.*. . . . . . . . . . . . . . 1,850 37,000
HCA-The Healthcare Co. . . . . . . . . . . . . . . . . . 1,625 64,898
Healthsouth Corp.* . . . . . . . . . . . . . . . . . . . 9,575 114,900
Lincare Holdings, Inc.*. . . . . . . . . . . . . . . . . 975 41,011
Tenet Healthcare Corp.*. . . . . . . . . . . . . . . . . 1,750 68,797
-----------
326,606
-----------
INDUSTRIAL & COMMERCIAL MACHINERY - 5.86%
Applied Materials, Inc.* . . . . . . . . . . . . . . . . 675 35,859
Baker Hughes, Inc. . . . . . . . . . . . . . . . . . . . 13,225 454,609
Bell & Howell Co.* . . . . . . . . . . . . . . . . . . . 3,325 63,175
Brocade Communications Systems, Inc.*. . . . . . . . . . 1,700 386,537
Cisco Systems, Inc.* . . . . . . . . . . . . . . . . . . 1,000 53,875
Compaq Computer Corp.. . . . . . . . . . . . . . . . . . 78,950 2,400,870
Dell Computer Corp.* . . . . . . . . . . . . . . . . . . 925 27,288
Diebold, Inc.. . . . . . . . . . . . . . . . . . . . . . 47,000 1,222,000
EMC Corp.* . . . . . . . . . . . . . . . . . . . . . . . 575 51,211
Hewlett-Packard Corp.. . . . . . . . . . . . . . . . . . 450 20,897
Lexmark International, Inc.* . . . . . . . . . . . . . . 8,375 343,375
Moog, Inc. - Class A*. . . . . . . . . . . . . . . . . . 1,025 29,853
PSC, Inc.* . . . . . . . . . . . . . . . . . . . . . . . 8,375 17,797
Sun Microsystems, Inc.*. . . . . . . . . . . . . . . . . 1,325 146,909
-----------
5,254,255
-----------
MOTION PICTURE PRODUCTIONS - 0.07%
Alliance Atlantis Communications Corp.* (Canada)(Note 7) 4,300 64,758
-----------
NURSING CARE FACILITIES - 0.08%
Manor Care, Inc.*. . . . . . . . . . . . . . . . . . . . 4,325 72,173
-----------
PAPER & ALLIED PRODUCTS - 0.95%
Aracruz Celulose SA - ADR (Brazil) (Note 7). . . . . . . 50,250 753,750
Smurfit-Stone Container Corp.* . . . . . . . . . . . . . 7,364 99,414
-----------
853,164
-----------
</TABLE>
The accompanying notes are an in integral part of the financial statements.
27
<PAGE>
Investment Portfolio - October 31, 2000
<TABLE>
<CAPTION>
VALUE
Blended Asset Series II SHARES (NOTE 2)
------------------------------------------------------ --------- -----------
<S> <C> <C>
PRIMARY METAL INDUSTRIES - 0.77%
Intermet Corp. . . . . . . . . . . . . . . . . . . . . 5,375 $ 40,312
Phelps Dodge Corp. . . . . . . . . . . . . . . . . . . 12,025 562,169
Texas Industries, Inc. . . . . . . . . . . . . . . . . 3,650 85,091
-----------
687,572
-----------
PUBLISHING - 0.84%
Reed International plc - ADR (United Kingdom) (Note 7) 20,300 758,713
-----------
RETAIL SPECIALTY STORES - 0.31%
Amazon.com, Inc.*. . . . . . . . . . . . . . . . . . . 1,575 57,684
Great Atlantic & Pacific Tea Company, Inc. . . . . . . 3,400 34,000
Hancock Fabrics, Inc.. . . . . . . . . . . . . . . . . 15,300 66,937
Omnicare, Inc. . . . . . . . . . . . . . . . . . . . . 5,450 95,375
Syms Corp.*. . . . . . . . . . . . . . . . . . . . . . 4,600 25,875
-----------
279,871
-----------
RUBBER & MISCELLANEOUS PLASTIC PRODUCTS - 0.03%
Applied Extrusion Technologies, Inc.*. . . . . . . . . 8,875 27,180
-----------
SOCIAL SERVICES - 0.11%
American Retirement Corp.* . . . . . . . . . . . . . . 8,650 46,018
Emeritus Corp.*. . . . . . . . . . . . . . . . . . . . 2,400 3,600
Sunrise Assisted Living, Inc.* . . . . . . . . . . . . 2,250 52,594
-----------
102,212
-----------
SOFTWARE- 3.76%
Checkpoint Systems, Inc.*. . . . . . . . . . . . . . . 450 71,269
Computer Associates International, Inc.. . . . . . . . 4,525 144,234
Electronic Data Systems Corp.. . . . . . . . . . . . . 1,350 63,366
J.D. Edwards & Co.*. . . . . . . . . . . . . . . . . . 1,275 32,991
Microsoft Corp.* . . . . . . . . . . . . . . . . . . . 1,125 77,484
Oracle Corp.*. . . . . . . . . . . . . . . . . . . . . 1,250 41,250
Parametric Technology Corp.* . . . . . . . . . . . . . 218,275 2,687,511
Pharmacopeia, Inc.*. . . . . . . . . . . . . . . . . . 575 10,494
Siebel Systems, Inc.*. . . . . . . . . . . . . . . . . 1,850 194,134
Veritas Software Corp.*. . . . . . . . . . . . . . . . 350 49,355
-----------
3,372,088
-----------
TECHNICAL INSTRUMENTS & SUPPLIES - 4.63%
Becton, Dickinson & Co.. . . . . . . . . . . . . . . . 24,075 806,512
Boston Scientific Corp.* . . . . . . . . . . . . . . . 2,600 41,437
Eastman Kodak Co.. . . . . . . . . . . . . . . . . . . 68,425 3,070,572
Getinge Industrier AB - B Shares (Sweden) (Note 7) . . 7,450 69,521
KLA Tenor Corp.* . . . . . . . . . . . . . . . . . . . 300 10,144
</TABLE>
The accompanying notes are an in integral part of the financial statements.
28
<PAGE>
Investment Portfolio - October 31, 2000
<TABLE>
<CAPTION>
VALUE
Blended Asset Series II SHARES (NOTE 2)
--------------------------------------------------------- ---------- -----------
<S> <C> <C>
TECHNICAL INSTRUMENTS & SUPPLIES (continued)
Med-Design Corp.* . . . . . . . . . . . . . . . . . . . . 1,925 $ 34,650
Sybron International Corp.* . . . . . . . . . . . . . . . 4,750 117,563
-----------
4,150,399
-----------
TELECOMMUNICATION SERVICES - 1.25%
AT&T Corp.. . . . . . . . . . . . . . . . . . . . . . . . 3,525 81,736
Rogers Communications, Inc. - Class B (Canada). . . . . . 950 18,525
Sinclair Broadcast Group, Inc.* . . . . . . . . . . . . . 11,850 109,242
Sprint Corp.. . . . . . . . . . . . . . . . . . . . . . . 775 19,763
Telecomunicacoes Brasileiras S.A. (Telebras) -
ADR (Brazil) (Note 7). . . . . . . . . . . . . . . . 11,680 855,560
Verizon Communications. . . . . . . . . . . . . . . . . . 300 17,344
WorldCom, Inc.* . . . . . . . . . . . . . . . . . . . . . 775 18,406
-----------
1,120,576
-----------
TESTING LABORATORIES - 0.08%
marchFirst, Inc*. . . . . . . . . . . . . . . . . . . . . 2,900 16,856
Paradigm Geophysical Ltd.* (Israel) . . . . . . . . . . . 9,950 53,481
-----------
70,337
-----------
TEXTILE MILL PRODUCTS - 0.07%
Albany International Corp. - Class A* . . . . . . . . . . 5,715 61,436
-----------
TRANSPORTATION - 4.65%
EQUIPMENT - 0.99%
Northrop Grumman Corp.. . . . . . . . . . . . . . . . 10,100 848,400
Wabtec Corp.. . . . . . . . . . . . . . . . . . . . . 4,325 43,791
-----------
892,191
-----------
RAILROAD - 3.45%
Burlington Northern Santa Fe Corp.. . . . . . . . . . 59,100 1,569,844
Canadian National Railway Co. - ADR (Canada) (Note 7) 45,275 1,426,162
Kansas City Southern Industries, Inc. . . . . . . . . 11,275 97,952
-----------
3,093,958
-----------
WATER - 0.21%
Trico Marine Services, Inc.*. . . . . . . . . . . . . 11,175 185,784
-----------
4,171,933
-----------
TOTAL COMMON STOCK
(Identified Cost $47,510,412) . . . . . . . . . . . . 48,936,425
-----------
</TABLE>
The accompanying notes are an in integral part of the financial statements.
29
<PAGE>
Investment Portfolio - October 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT/ VALUE
Blended Asset Series II SHARES (NOTE 2)
--------------------------------------- ----------- ------------
<S> <C> <C>
U.S. TREASURY SECURITIES - 40.78%
U.S. TREASURY BONDS - 19.86%
U.S. Treasury Bond, 6.875%, 8/15/2025 . $ 330,000 $ 367,558
U.S. Treasury Bond, 6.50%, 11/15/2026 . 440,000 470,508
U.S. Treasury Bond, 5.50%, 8/15/2028. . 18,035,000 16,973,135
------------
TOTAL U.S. TREASURY BONDS
(Identified Cost $16,700,376) . . . 17,811,201
------------
U.S. TREASURY NOTES - 20.92%
U.S. Treasury Note, 6.375%, 6/30/2002 . 2,000,000 2,009,060
U.S. Treasury Note, 5.875%, 11/15/2004. 7,000,000 7,002,555
U.S. Treasury Note, 6.50%, 5/15/2005. . 105,000 107,846
U.S. Treasury Note, 6.75%, 5/15/2005. . 9,300,000 9,641,487
------------
TOTAL U.S. TREASURY NOTES
(Identified Cost $18,554,881) . . . 18,760,948
------------
TOTAL U.S. TREASURY SECURITIES
(Identified Cost $35,255,257) . . . 36,572,149
------------
U.S. GOVERNMENT AGENCIES - 3.71%
Federal National Mortgage Association
Note, 5.25%, 1/15/2003. . . . . . . 165,000 161,000
Federal National Mortgage Association
Note, 5.75%, 2/15/2008. . . . . . . 185,000 175,991
Federal National Mortgage Association
Note, 6.625%, 9/15/2009 . . . . . . 3,000,000 2,987,919
------------
TOTAL U.S. GOVERNMENT AGENCIES
(Identified Cost $3,227,688). . . . 3,324,910
------------
SHORT-TERM INVESTMENTS - 0.15%
Dreyfus Treasury Cash Management Fund
(Identified Cost $130,244). . . . . 130,244 130,244
------------
TOTAL INVESTMENTS - 99.21%
(Identified Cost $86,123,601) . . . 88,963,728
OTHER ASSETS, LESS LIABILTIES - 0.79% . 708,084
------------
NET ASSETS - 100% . . . . . . . . . . . $89,671,812
===========
</TABLE>
*Non-income producing security
ADR = American Depository Receipt
FEDERAL TAX INFORMATION:
At October 31, 2000, the net unrealized appreciation based on identified cost
for federal income tax purposes of $86,141,224 was as follows:
Unrealized appreciation $7,138,607
Unrealized depreciation (4,316,103)
-----------
UNREALIZED APPRECIATION - NET $2,822,504
==========
The accompanying notes are an integral part of the financial statements.
30
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES - BLENDED ASSET SERIES II
OCTOBER 31, 2000
ASSETS:
<S> <C>
Investments, at value (identified cost $86,123,601)(Note 2). . $88,963,728
CASH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152
FOREIGN CURRENCY, AT VALUE (COST, $21,420) . . . . . . . . . . 19,956
Receivable for securities sold . . . . . . . . . . . . . . . . 31,498
Interest receivable. . . . . . . . . . . . . . . . . . . . . . 797,804
Dividends receivable . . . . . . . . . . . . . . . . . . . . . 35,562
Foreign tax reclaims receivable. . . . . . . . . . . . . . . . 3,403
-----------
TOTAL ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . 89,852,103
-----------
LIABILITIES:
Accrued management fees (Note 3) . . . . . . . . . . . . . . . 94,636
Accrued directors' fees (Note 3) . . . . . . . . . . . . . . . 4,256
Accrued fund accounting fees (Note 3). . . . . . . . . . . . . 3,434
Transfer agent fees payable (Note 3) . . . . . . . . . . . . . 1,781
Payable for securities purchased . . . . . . . . . . . . . . . 23,975
Payable for fund shares repurchased. . . . . . . . . . . . . . 15,554
Audit fee payable. . . . . . . . . . . . . . . . . . . . . . . 12,899
Registration and filing fee payable. . . . . . . . . . . . . . 8,769
Custodian fee payable. . . . . . . . . . . . . . . . . . . . . 4,263
Other payables and accrued expenses. . . . . . . . . . . . . . 10,724
-----------
TOTAL LIABILITIES. . . . . . . . . . . . . . . . . . . . . . . 180,291
-----------
TOTAL NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . $89,671,812
===========
NET ASSETS CONSIST OF:
Capital stock. . . . . . . . . . . . . . . . . . . . . . . . . $ 63,911
Additional paid-in-capital . . . . . . . . . . . . . . . . . . 80,661,397
Undistributed net investment income. . . . . . . . . . . . . . 1,193,494
Accumulated net realized gain on investments . . . . . . . . . 4,914,611
Net unrealized appreciation on investments and other assets
and liabilities . . . . . . . . . . . . . . . . . . . . . 2,838,399
-----------
TOTAL NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . 89,671,812
===========
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE - CLASS A
($89,671,812/6,391,112 shares). . . . . . . . . . . . . . . $ 14.03
===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
31
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS - BLENDED ASSET SERIES II
FOR THE YEAR ENDED OCTOBER 31, 2000
INVESTMENT INCOME:
<S> <C>
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,773,457
Dividends (net of foreign taxes withheld, $24,251) . . . . . . . . . . 702,506
-----------
Total Investment Income. . . . . . . . . . . . . . . . . . . . . . . . 2,475,963
-----------
EXPENSES:
Management fees (Note 3) . . . . . . . . . . . . . . . . . . . . . . . 661,336
Fund accounting fees (Note 3). . . . . . . . . . . . . . . . . . . . . 29,804
Directors' fees (Note 3) . . . . . . . . . . . . . . . . . . . . . . . 7,221
Transfer agent fees (Note 3) . . . . . . . . . . . . . . . . . . . . . 15,872
Custodian fee. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,569
Audit fee. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,553
Miscellaneous. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,897
-----------
Total Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . 793,252
-----------
NET INVESTMENT INCOME. . . . . . . . . . . . . . . . . . . . . . . . . 1,682,711
-----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments and other assets . . . . . . . . . . 5,116,460
Net change in unrealized appreciation on investments and other assets. 4,917,050
-----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS. . . . . . . . . . . . 10,033,510
-----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . $11,716,221
===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
32
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS - BLENDED ASSET SERIES II
<TABLE>
<CAPTION>
FOR THE FOR THE
YEAR YEAR
ENDED ENDED
10/31/00 10/31/99
------------ ------------
INCREASE (DECREASE) IN NET ASSETS:
<S> <C> <C>
OPERATIONS:
Net investment income . . . . . . . . . . . . . . . . $ 1,682,711 $ 1,716,248
Net realized gain on investments. . . . . . . . . . . 5,116,460 3,482,912
Net change in unrealized appreciation on investments. 4,917,050 1,892,935
------------ ------------
NET INCREASE FROM OPERATIONS. . . . . . . . . . . . . 11,716,221 7,092,095
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 2):
From net investment income. . . . . . . . . . . . . . (1,371,730) (1,640,967)
From net realized gain on investments . . . . . . . . (3,441,044) (4,195,324)
------------ ------------
Total distributions to shareholders . . . . . . . . . (4,812,774) (5,836,291)
------------ ------------
CAPITAL STOCK ISSUED AND REPURCHASED:
Net increase (decrease) from capital
share transactions (Note 5). . . . . . . . . . . . 17,563,619 (2,024,080)
------------ ------------
Net increase (decrease) in net assets . . . . . . . . 24,467,066 (768,276)
NET ASSETS:
Beginning of year . . . . . . . . . . . . . . . . . . 65,204,746 65,973,022
------------ ------------
END OF YEAR (including undistributed net investment
income of $1,193,494 and $873,829, respectively). $89,671,812 $65,204,746
============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
33
<PAGE>
<TABLE>
<CAPTION>
Financial Highlights - Blended Asset Series II
FOR THE
TEN
MONTHS
FOR THE YEARS ENDED ENDED
10/31/00 10/31/99 10/31/98 10/31/97 10/31/96
--------------------- ---------- ---------- ---------- ----------
Per share data (for a share outstanding
throughout each period):
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE - BEGINNING OF PERIOD. . . . . . . . $ 12.74 $ 12.60 $ 14.69 $ 13.04 $ 11.95
--------------------- ---------- ---------- ---------- ----------
Income from investment operations:
Net investment income . . . . . . . . . . . . . . 0.29 0.33 0.31 0.32 0.23*
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . . . . . 1.97 0.92 (0.38) 2.13 0.96
--------------------- ---------- ---------- ---------- ----------
Total from investment operations . . . . . . . . . . 2.26 1.25 (0.07) 2.45 1.19
--------------------- ---------- ---------- ---------- ----------
Less distributions to shareholders:
From net investment income. . . . . . . . . . . . (0.28) (0.31) (0.29) (0.39) (0.04)
From net realized gain on investments . . . . . . (0.69) (0.80) (1.73) (0.41) (0.06)
--------------------- ---------- ---------- ---------- ----------
Total distributions to shareholders. . . . . . . . . (0.97) (1.11) (2.02) (0.80) (0.10)
--------------------- ---------- ---------- ---------- ----------
NET ASSET VALUE - END OF PERIOD. . . . . . . . . . . $ 14.03 $ 12.74 $ 12.60 $ 14.69 $ 13.04
===================== ========== ========== ========== ==========
Total return1. . . . . . . . . . . . . . . . . . . . 18.83% 10.46% (0.56%) 19.69% 10.01%
Ratios (to average net assets) / Supplemental Data:
Expenses . . . . . . . . . . . . . . . . . . . . 1.20% 1.15% 1.15% 1.15% 1.20%2*
Net investment income. . . . . . . . . . . . . . 2.55% 2.44% 2.45% 2.45% 2.51%2*
Portfolio turnover . . . . . . . . . . . . . . . . . 95% 78% 61% 63% 57%
NET ASSETS - END OF PERIOD (000's omitted) . . . . . $ 89,672 $ 65,205 $ 65,973 $ 50,922 $ 32,999
===================== ========== ========== ========== ==========
Financial Highlights - Blended Asset Series II
For the
Year
Ended
12/31/95
----------
Per share data (for a share outstanding
throughout each period):
<S> <C>
NET ASSET VALUE - BEGINNING OF PERIOD. . . . . . . . $ 10.12
----------
Income from investment operations:
Net investment income . . . . . . . . . . . . . . 0.24*
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . . . . . 3.05
----------
Total from investment operations . . . . . . . . . . 3.29
----------
Less distributions to shareholders:
From net investment income. . . . . . . . . . . . (0.24)
From net realized gain on investments . . . . . . (1.22)
----------
Total distributions to shareholders. . . . . . . . . (1.46)
----------
NET ASSET VALUE - END OF PERIOD. . . . . . . . . . . $ 11.95
==========
Total return1. . . . . . . . . . . . . . . . . . . . 32.64%
Ratios (to average net assets) / Supplemental Data:
Expenses . . . . . . . . . . . . . . . . . . . . 1.20%*
Net investment income. . . . . . . . . . . . . . 2.53%*
Portfolio turnover . . . . . . . . . . . . . . . . . 63%
NET ASSETS - END OF PERIOD (000's omitted) . . . . . $ 20,519
==========
</TABLE>
* The investment advisor did not impose all or a portion of its management fee
and in some periods paid a portion of the Series' expenses. If these expenses
had been incurred by the Series, the net investment income per share and the
ratios would have been as follows:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Net investment income . . . . . N/A N/A N/A N/A $ 0.23 $0.23
Ratios (to average net assets):
Expenses . . . . . . . . . . N/A N/A N/A N/A 1.22%2 1.33%
Net investment income. . . . N/A N/A N/A N/A 2.49%2 2.40%
</TABLE>
1. Represents aggregate total return for the period indicated.
2. Annualized.
The accompanying notes are an integral part of the financial statements.
34
<PAGE>
Performance Update as of October 31, 2000
Exeter Fund, Inc. - Maximum Horizon Series
Total Return
Through Growth of $10,000 Average
10/31/00 Investment Cumulative Annual
One Year $12,835 28.35% 28.35%
Five Year $22,263 122.63% 17.34%
Inception 1 $22,263 122.63% 17.34%
Standard & Poor's 500 Total Return Index
Total Return
Through Growth of $10,000 Average
10/31/00 Investment Cumulative Annual
One Year $10,608 6.08% 6.08%
Five Year $26,656 166.56% 21.64%
Inception 1 $26,656 166.56% 21.64%
Value Line Index
Total Return
Through Growth of $10,000 Average
10/31/00 Investment Cumulative Annual
One Year $9,896 -1.04% -1.04%
Five Year $12,866 28.66% 5.16%
Inception 1 $12,866 28.66% 5.16%
The value of a $10,000 investment in the Exeter Fund, Inc. - Maximum
Horizon Series from its inception (11/1/95) to present (10/31/00) as compared to
the Standard & Poor's (S&P) 500 Total Return Index and the Value Line Index. 2
[graphic]
[line chart]
Data for line chart to follow:
<TABLE>
<CAPTION>
Exeter Fund, Inc. Standard & Poor's 500
Date Maximum Horizon Series Total Return Index Value Line Index
<S> <C> <C> <C>
11/01/1995 10,000 10,000 10,000
10/31/1996 11,521 12,408 11,198
10/31/1997 14,604 16,392 13,998
10/31/1998 13,730 19,996 12,805
10/31/1999 17,345 25,127 13,001
10/31/2000 22,263 26,656 12,866
</TABLE>
1 The Series and Index performance are calculated from November 1, 1995, the
Series' inception date. The Series' performance is historical and may not be
indicative of future results.
2 The Standard & Poor's (S&P) 500 Total Return Index is an unmanaged
capitalization-weighted measure of approximately 500 widely held common stocks
listed on the New York Stock Exchange, American Stock Exchange, and the
Over-the-Counter market. The Index returns assume reinvestment of income and,
unlike Fund returns, do not reflect any fees or expenses. The Value Line Index
is an unmanaged index that consists of approximately 1700 securities that are
traded on the New York Stock Exchange, the NASDAQ Stock Market, and the American
Stock Exchange. The Index returns are based on a geometric average of relative
price changes of the component stocks and do not include income, and unlike
Series returns, do not reflect any fees or expenses.
35
<PAGE>
Investment Portfolio - October 31, 2000
<TABLE>
<CAPTION>
VALUE
Maximum Horizon Series SHARES (NOTE 2)
-------------------------------------------------- --------- ---------
COMMON STOCK - 84.37%
<S> <C> <C>
AGRICULTURAL PRODUCTION - 0.10%
Sylvan, Inc.*. . . . . . . . . . . . . . . . . . . 3,250 $ 30,875
---------
APPAREL - 2.16%
Adidas - Solomon AG (Germany) (Note 7) . . . . . . 14,100 648,385
---------
CHEMICAL & ALLIED PRODUCTS - 17.39%
BIOLOGICAL PRODUCTS - 9.50%
Cypress Bioscience, Inc.*. . . . . . . . . . . 17,300 22,706
FMC Corp.. . . . . . . . . . . . . . . . . . . 10,300 782,800
Gillette Co. . . . . . . . . . . . . . . . . . 18,000 627,750
Human Genome Sciences, Inc.* . . . . . . . . . 100 8,839
Millennium Pharmaceuticals, Inc.*. . . . . . . 300 21,769
Procter & Gamble Co. . . . . . . . . . . . . . 8,800 628,650
Sigma-Aldrich Corp.. . . . . . . . . . . . . . 21,200 757,900
---------
2,850,414
---------
PHARMACEUTICAL PREPARATIONS - 4.08%
Abbott Laboratories. . . . . . . . . . . . . . 425 22,445
American Home Products Corp. . . . . . . . . . 4,850 307,975
Bausch & Lomb, Inc.. . . . . . . . . . . . . . 500 19,281
Bristol-Myers Squibb Co. . . . . . . . . . . . 775 47,227
Merck KGaA (Germany) (Note 7). . . . . . . . . 450 17,146
Pfizer, Inc. . . . . . . . . . . . . . . . . . 4,500 194,344
Pharmacia Corp.. . . . . . . . . . . . . . . . 10,475 576,125
Schering-Plough Corp.. . . . . . . . . . . . . 750 38,766
---------
1,223,309
---------
PAINTS & ALLIED PRODUCTS - 1.68%
Sherwin-Williams Co. . . . . . . . . . . . . . 23,200 503,150
---------
PLASTIC MATERIALS - 2.13%
Eastman Chemical Co. . . . . . . . . . . . . . 14,275 612,041
PolyOne Corp.. . . . . . . . . . . . . . . . . 3,575 28,153
---------
640,194
---------
5,217,067
---------
COMMERCIAL, PHYSICAL & BIOLOGICAL RESEARCH - 0.15%
Monsanto Co.*. . . . . . . . . . . . . . . . . . . 1,725 43,988
---------
COMPUTER INTEGRATED SYSTEMS - 0.19%
IDX Systems Corp.* . . . . . . . . . . . . . . . . 700 22,400
Sabre Holdings Corp.*. . . . . . . . . . . . . . . 525 17,555
Unisys Corp.*. . . . . . . . . . . . . . . . . . . 1,325 16,894
---------
56,849
---------
</TABLE>
The accompanying notes are an integral part of the financial statements.
36
<PAGE>
Investment Portfolio - October 31, 2000
<TABLE>
<CAPTION>
VALUE
Maximum Horizon Series SHARES (NOTE 2)
----------------------------------------------------------- --------- ---------
<S> <C> <C>
CRUDE PETROLEUM & NATURAL GAS - 4.60%
Gulf Canada Resources Ltd. - ADR* (Canada) (Note 7) . . . . 148,075 $629,319
Petroleo Brasileiro S.A. (Petrobras) -ADR (Brazil) (Note 7) 27,025 716,689
Stolt Offshore SA* (United Kingdom) (Note 7). . . . . . . . 3,000 35,813
---------
1,381,821
---------
ELECTRIC, GAS & SANITARY SERVICES - 5.57%
Allegheny Energy, Inc.. . . . . . . . . . . . . . . . . . . 7,600 311,125
CH Energy Group, Inc. . . . . . . . . . . . . . . . . . . . 1,100 43,312
Cinergy Corp. . . . . . . . . . . . . . . . . . . . . . . . 8,900 272,562
Conectiv, Inc.. . . . . . . . . . . . . . . . . . . . . . . 12,300 220,631
FirstEnergy Corp. . . . . . . . . . . . . . . . . . . . . . 10,700 276,862
Waste Management, Inc.. . . . . . . . . . . . . . . . . . . 27,300 546,000
---------
1,670,492
---------
ELECTRONICS & ELECTRICAL EQUIPMENT - 4.64%
Altera Corp.* . . . . . . . . . . . . . . . . . . . . . . . 550 22,516
Analog Devices, Inc.* . . . . . . . . . . . . . . . . . . . 225 14,625
Broadcom Corp.* . . . . . . . . . . . . . . . . . . . . . . 25 5,559
The Carbide/Graphite Group, Inc.* . . . . . . . . . . . . . 3,375 8,437
Intel Corp. . . . . . . . . . . . . . . . . . . . . . . . . 975 43,875
Linear Technology Corp. . . . . . . . . . . . . . . . . . . 125 8,070
Maxim Integrated Products, Inc.*. . . . . . . . . . . . . . 225 14,920
Micron Technology, Inc.*. . . . . . . . . . . . . . . . . . 225 7,819
Motorola, Inc.. . . . . . . . . . . . . . . . . . . . . . . 675 16,833
PMC-Sierra, Inc.* . . . . . . . . . . . . . . . . . . . . . 25 4,238
Raytheon Co - Class A . . . . . . . . . . . . . . . . . . . 13,250 424,000
Texas Instruments, Inc. . . . . . . . . . . . . . . . . . . 16,175 793,586
Veramark Technologies, Inc.*. . . . . . . . . . . . . . . . 5,125 14,094
Xilinx, Inc.* . . . . . . . . . . . . . . . . . . . . . . . 200 14,487
---------
1,393,059
---------
FABRICATED METAL PRODUCTS - 1.26%
Lockheed Martin Corp. . . . . . . . . . . . . . . . . . . . 9,725 348,641
Norddeutsche Affinier AG (Germany) (Note 7) . . . . . . . . 3,025 30,744
---------
379,385
---------
FOOD & BEVERAGES - 6.63%
Diageo plc - ADR (United Kingdom) (Note 7). . . . . . . . . 13,000 489,125
Earthgrains Co. . . . . . . . . . . . . . . . . . . . . . . 1,650 33,412
Flowers Industries, Inc.. . . . . . . . . . . . . . . . . . 1,075 16,528
H.J. Heinz Co.. . . . . . . . . . . . . . . . . . . . . . . 18,800 788,425
Unilever plc - ADR (United Kingdom) (Note 7). . . . . . . . 23,696 660,526
---------
1,988,016
---------
</TABLE>
The accompanying notes are an integral part of the financial statements.
37
<PAGE>
Investment Portfolio - October 31, 2000
<TABLE>
<CAPTION>
VALUE
Maximum Horizon Series SHARES (NOTE 2)
--------------------------------------------------------- --------- ---------
<S> <C> <C>
FRESH FRUITS & VEGETABLES - 0.06%
Fresh Del Monte Produce, Inc.*. . . . . . . . . . . . . . 4,475 $ 17,620
---------
FURNITURE & FIXTURES - 0.07%
Hillenbrand Industries, Inc.. . . . . . . . . . . . . . . 475 21,969
---------
GENERAL SURGICAL & MEDICAL HOSPITALS - 0.48%
Apria Healthcare Group, Inc.* . . . . . . . . . . . . . . 725 14,500
HCA-The Healthcare Co.. . . . . . . . . . . . . . . . . . 675 26,958
Healthsouth Corp.*. . . . . . . . . . . . . . . . . . . . 5,050 60,600
Lincare Holdings, Inc.* . . . . . . . . . . . . . . . . . 375 15,773
Tenet Healthcare Corp.* . . . . . . . . . . . . . . . . . 650 25,553
---------
143,384
---------
GLASS PRODUCTS - 0.31%
Libbey, Inc.. . . . . . . . . . . . . . . . . . . . . . . 1,675 45,644
Waterford Wedgwood plc (United Kingdom) (Note 7). . . . . 38,150 46,563
---------
92,207
---------
INDUSTRIAL & COMMERCIAL MACHINERY - 6.20%
Applied Materials, Inc.*. . . . . . . . . . . . . . . . . 100 5,312
Baker Hughes, Inc.. . . . . . . . . . . . . . . . . . . . 6,100 209,687
Bell & Howell Co.*. . . . . . . . . . . . . . . . . . . . 1,600 30,400
Brocade Communications Systems, Inc.* . . . . . . . . . . 50 11,369
Cisco Systems, Inc.*. . . . . . . . . . . . . . . . . . . 600 32,325
Compaq Computer Corp. . . . . . . . . . . . . . . . . . . 28,000 851,480
Dell Computer Corp.*. . . . . . . . . . . . . . . . . . . 550 16,225
Diebold, Inc. . . . . . . . . . . . . . . . . . . . . . . 22,100 574,600
EMC Corp.*. . . . . . . . . . . . . . . . . . . . . . . . 350 31,172
Hewlett-Packard Co. . . . . . . . . . . . . . . . . . . . 250 11,609
Lexmark International, Inc. . . . . . . . . . . . . . . . 700 28,700
Moog, Inc. - Class A. . . . . . . . . . . . . . . . . . . 700 20,388
PSC, Inc.*. . . . . . . . . . . . . . . . . . . . . . . . 3,200 6,800
Sun Microsystems, Inc.* . . . . . . . . . . . . . . . . . 275 30,491
---------
1,860,558
---------
MOTION PICTURE PRODUCTION - 0.27%
Alliance Atlantis Communications Corp.* (Canada) (Note 7) 5,400 81,323
---------
NURSING CARE FACILITIES - 0.13%
Beverly Enterprises, Inc.*. . . . . . . . . . . . . . . . 2,300 11,500
Manor Care, Inc.* . . . . . . . . . . . . . . . . . . . . 1,675 27,952
---------
39,452
---------
</TABLE>
The accompanying notes are an integral part of the financial statements.
38
<PAGE>
Investment Portfolio - October 31, 2000
<TABLE>
<CAPTION>
VALUE
Maximum Horizon Series SHARES (NOTE 2)
------------------------------------------------------ --------- -----------
<S> <C> <C>
PAPER & ALLIED PRODUCTS - 6.94%
Aracruz Celulose S.A. - ADR (Brazil) (Note 7). . . . . 27,950 $ 419,250
International Paper Co.. . . . . . . . . . . . . . . . 28,300 1,036,487
Kimberly-Clark Corp. . . . . . . . . . . . . . . . . . 8,675 572,550
Smurfit-Stone Container Corp.* . . . . . . . . . . . . 4,005 54,068
-----------
2,082,355
-----------
PRIMARY METAL INDUSTRIES - 2.69%
Intermet Corp. . . . . . . . . . . . . . . . . . . . . 2,950 22,125
Phelps Dodge Corp. . . . . . . . . . . . . . . . . . . 8,000 374,000
Texas Industries, Inc. . . . . . . . . . . . . . . . . 17,625 410,883
-----------
807,008
-----------
PUBLISHING - 2.70%
Reed International plc - ADR (United Kingdom) (Note 7) 21,700 811,038
-----------
RETAIL - 0.43%
Amazon.com, Inc.*. . . . . . . . . . . . . . . . . . . 675 24,722
Great Atlantic & Pacific Tea Company, Inc. . . . . . . 1,525 15,250
Hancock Fabrics, Inc.. . . . . . . . . . . . . . . . . 7,900 34,562
Omnicare, Inc. . . . . . . . . . . . . . . . . . . . . 2,250 39,375
Syms Corp.*. . . . . . . . . . . . . . . . . . . . . . 2,700 15,188
-----------
129,097
-----------
RUBBER & MISCELLANEOUS PLASTIC PRODUCTS - 1.64%
Applied Extrusion Technologies, Inc.*. . . . . . . . . 5,175 15,848
NIKE, Inc. - Class A . . . . . . . . . . . . . . . . . 11,900 475,256
-----------
491,104
-----------
SOCIAL SERVICES - 0.25%
American Retirement Corp.* . . . . . . . . . . . . . . 8,450 44,954
Emeritus Corp.*. . . . . . . . . . . . . . . . . . . . 1,100 1,650
Sunrise Assisted Living, Inc.* . . . . . . . . . . . . 1,175 27,466
-----------
74,070
-----------
SOFTWARE - 5.99%
Checkpoint Systems, Inc.*. . . . . . . . . . . . . . . 125 19,797
Computer Associates International, Inc.* . . . . . . . 12,050 384,094
J.D. Edwards & Co.*. . . . . . . . . . . . . . . . . . 750 19,406
Electronic Data Systems Corp.. . . . . . . . . . . . . 650 30,509
Microsoft Corp.* . . . . . . . . . . . . . . . . . . . 500 34,438
Oracle Corp.*. . . . . . . . . . . . . . . . . . . . . 750 24,750
Parametric Technology Corp.* . . . . . . . . . . . . . 99,675 1,227,248
Pharmacopeia, Inc.*. . . . . . . . . . . . . . . . . . 300 5,475
Siebel Systems, Inc.*. . . . . . . . . . . . . . . . . 200 20,988
Veritas Software Corp.*. . . . . . . . . . . . . . . . 225 31,729
-----------
1,798,434
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
39
<PAGE>
Investment Portfolio - October 31, 2000
<TABLE>
<CAPTION>
VALUE
Maximum Horizon Series SHARES (NOTE 2)
-------------------------------------------------- --------- -----------
<S> <C> <C>
TECHNICAL INSTRUMENTS & SUPPLIES - 4.48%
Becton, Dickinson & Co.. . . . . . . . . . . . . . 2,875 $ 96,312
Boston Scientific Corp.* . . . . . . . . . . . . . 1,000 15,937
Eastman Kodak Co.. . . . . . . . . . . . . . . . . 25,040 1,123,670
Getinge Industrier AB - B Shares (Sweden) (Note 7) 2,900 27,062
KLA-Tencor Corp.*. . . . . . . . . . . . . . . . . 175 5,917
Med-Design Corp.*. . . . . . . . . . . . . . . . . 775 13,950
Sybron International Corp.*. . . . . . . . . . . . 2,525 62,494
-----------
1,345,342
-----------
TELECOMMUNICATION SERVICES - 2.05%
AT&T Corp. . . . . . . . . . . . . . . . . . . . . 525 12,173
Rogers Communications, Inc. - Class B (Canada) . . 425 8,288
Sinclair Broadcast Group, Inc.*. . . . . . . . . . 4,450 41,023
Sprint Corp. . . . . . . . . . . . . . . . . . . . 475 12,113
Telecomunicacoes Brasileiras S.A. (Telebras) -
ADR (Brazil) (Note 7). . . . . . . . . . . . . 7,125 521,906
Verizon Communications . . . . . . . . . . . . . . 175 10,117
WorldCom, Inc.*. . . . . . . . . . . . . . . . . . 350 8,313
-----------
613,933
-----------
TESTING LABORATORIES - 0.13%
marchFirst, Inc.*. . . . . . . . . . . . . . . . . 800 4,650
Paradigm Geophysical Ltd.* (Israel). . . . . . . . 6,175 33,191
-----------
37,841
-----------
TEXTILE MILL PRODUCTS - 0.11%
Albany International Corp. - Class A*. . . . . . . 3,235 34,776
-----------
TRANSPORTATION - 6.75%
EQUIPMENT - 2.10%
B.F. Goodrich Co.. . . . . . . . . . . . . . . 3,100 126,906
Northrup Grumman Corp. . . . . . . . . . . . . 5,700 478,800
Wabtec Corp. . . . . . . . . . . . . . . . . . 2,450 24,806
-----------
630,512
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
40
<PAGE>
Investment Portfolio - October 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT/ VALUE
Maximum Horizon Series SHARES (NOTE 2)
--------------------------------------------------------- ----------- -----------
<S> <C> <C>
RAILROAD - 4.28%
Burlington Northern Santa Fe Corp.. . . . . . . . . . 17,600 $ 467,500
Canadian National Railway Co. - ADR (Canada) (Note 7) 24,550 773,325
Kansas City Southern Industries, Inc. . . . . . . . . 4,875 42,352
-----------
1,283,177
-----------
WATER - 0.37%
Trico Marine Services, Inc.*. . . . . . . . . . . . . 6,750 112,219
-----------
2,025,908
-----------
TOTAL COMMON STOCK
(Identified Cost $24,447,671) . . . . . . . . . . . . 25,317,356
-----------
U.S. TREASURY SECURITIES - 11.29%
U.S. Treasury Bond, 5.50%, 08/15/2028
(Identified Cost $3,209,855). . . . . . . . . . . . . $ 3,600,000 3,388,039
-----------
SHORT-TERM INVESTMENTS - 3.75%
Dreyfus Treasury Cash Management Fund . . . . . . . . . . 327,426 327,426
Federal National Mortgage Association Discount
Note, 11/20/2000. . . . . . . . . . . . . . . . . . . $ 800,000 796,970
-----------
TOTAL SHORT-TERM INVESTMENTS
(Identified Cost $1,124,396). . . . . . . . . . . . . 1,124,396
-----------
TOTAL INVESTMENTS - 99.41%
(Identified Cost $28,781,922) . . . . . . . . . . . . 29,829,791
OTHER ASSETS, LESS LIABILITIES - 0.59%. . . . . . . . . . 177,192
-----------
NET ASSETS - 100% . . . . . . . . . . . . . . . . . . . . $30,006,983
===========
</TABLE>
*Non-income producing security
ADR = American Depository Receipt
Federal Tax Information:
At October 31, 2000, the net unrealized appreciation based on identified cost
for federal income tax purposes of $28,786,819 was as follows:
Unrealized appreciation $3,288,906
Unrealized depreciation (2,245,934)
-----------
UNREALIZED APPRECIATION - NET $1,042,972
==========
The accompanying notes are an integral part of the financial statements.
41
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES - MAXIMUM HORIZON SERIES
<TABLE>
<CAPTION>
OCTOBER 31, 2000
ASSETS:
<S> <C>
Investments, at value (identified cost $28,781,922)(Note 2). $29,829,791
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43,769
Foreign currency, at value (cost $12,178). . . . . . . . . . 11,338
Receivable for securities sold . . . . . . . . . . . . . . . 205,832
Receivable for fund shares sold. . . . . . . . . . . . . . . 1,298
Interest receivable. . . . . . . . . . . . . . . . . . . . . 43,300
Dividends receivable . . . . . . . . . . . . . . . . . . . . 28,277
Foreign tax reclaim receivable . . . . . . . . . . . . . . . 2,075
-----------
TOTAL ASSETS . . . . . . . . . . . . . . . . . . . . . . . . 30,165,680
-----------
LIABILITIES:
Accrued management fees (Note 3) . . . . . . . . . . . . . . 72,155
Accrued directors' fees (Note 3) . . . . . . . . . . . . . . 4,256
Accrued fund accounting fees (Note 3). . . . . . . . . . . . 3,393
Payable for fund shares repurchased. . . . . . . . . . . . . 50,242
Audit fee payable. . . . . . . . . . . . . . . . . . . . . . 11,509
Payable for securities purchased . . . . . . . . . . . . . . 9,350
Other payables and accrued expenses. . . . . . . . . . . . . 7,792
-----------
TOTAL LIABILITIES. . . . . . . . . . . . . . . . . . . . . . 158,697
-----------
TOTAL NET ASSETS . . . . . . . . . . . . . . . . . . . . . . $30,006,983
===========
NET ASSETS CONSIST OF:
Capital stock. . . . . . . . . . . . . . . . . . . . . . . . $ 18,239
Additional paid-in-capital . . . . . . . . . . . . . . . . . 23,860,965
Undistributed net investment income. . . . . . . . . . . . . 934,187
Accumulated net realized gain on investments and other
assets and liabilities. . . . . . . . . . . . . . . . . 4,146,723
Net unrealized appreciation on investments and other assets
and liabilities. . . . . . . . . . . . . . . . . . . . . 1,046,869
-----------
TOTAL NET ASSETS . . . . . . . . . . . . . . . . . . . . . . $30,006,983
===========
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE - CLASS A
($30,006,983/1,824,022 shares). . . . . . . . . . . . . . $ 16.45
===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
42
<PAGE>
STATEMENT OF OPERATIONS - MAXIMUM HORIZON SERIES
<TABLE>
<CAPTION>
FOR THE YEAR ENDED OCTOBER 31, 2000
INVESTMENT INCOME:
<S> <C>
Dividends (net of foreign tax withheld, $11,164) . . . . . . . . . . . $ 406,011
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 231,431
-----------
Total Investment Income. . . . . . . . . . . . . . . . . . . . . . . . 637,442
-----------
EXPENSES:
Management fees (Note 3) . . . . . . . . . . . . . . . . . . . . . . . 259,475
Fund accounting fees (Note 3). . . . . . . . . . . . . . . . . . . . . 29,503
Directors' fees (Note 3) . . . . . . . . . . . . . . . . . . . . . . . 7,223
Transfer agent fees (Note 3) . . . . . . . . . . . . . . . . . . . . . 6,228
Custodian fee. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,529
Audit fee. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,530
Miscellaneous. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,394
-----------
Total Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . 348,882
Less Reduction of Expenses (Note 3). . . . . . . . . . . . . . . . . . (37,313)
-----------
Net Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 311,569
-----------
NET INVESTMENT INCOME. . . . . . . . . . . . . . . . . . . . . . . . . 325,873
-----------
REALIZED AND UNREALIZED GAIN ON
INVESTMENTS:
Net realized gain on investments and other assets. . . . . . . . . . . 5,058,422
Net change in unrealized appreciation on investments and other assets. 814,680
-----------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS. . . . . . . . . . . . . . . . . . . . . . . . . . . 5,873,102
-----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . $6,198,975
===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
43
<PAGE>
STATEMENTS OF CHANGES - MAXIMUM HORIZON SERIES
<TABLE>
<CAPTION>
FOR THE FOR THE
YEAR YEAR
ENDED ENDED
10/31/00 10/31/99
------------ ------------
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
<S> <C> <C>
Net investment income. . . . . . . . . . . . $ 325,873 $ 204,473
Net realized gain on investments . . . . . . 5,058,422 2,187,613
Net change in unrealized appreciation on
investments . . . . . . . . . . . . . . 814,680 2,706,385
------------ ------------
Net increase from operations . . . . . . . . 6,198,975 5,098,471
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 2):
From net investment income . . . . . . . . . (328,455) (344,505)
From net realized gain on investments. . . . (2,101,339) (911,021)
------------ ------------
Total distributions to shareholders. . . . . (2,429,794) (1,255,526)
------------ ------------
CAPITAL STOCK ISSUED AND REPURCHASED:
Net increase (decrease) from capital share
transactions (Note 5) . . . . . . . . . . 4,723,095 (1,032,795)
------------ ------------
Net increase in net assets . . . . . . . . . 8,492,276 2,810,150
NET ASSETS:
Beginning of year. . . . . . . . . . . . . . 21,514,707 18,704,557
------------ ------------
END OF YEAR (including undistributed net
investment income of $937,187 and $52,108,
respectively) . . . . . . . . . . . . . . . $30,006,983 21,514,707
============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
44
<PAGE>
FINANCIAL HIGHLIGHTS - MAXIMUM HORIZON SERIES
<TABLE>
<CAPTION>
FOR THE YEARS ENDED
10/31/00 10/31/99 10/31/98 10/31/97 10/31/96
--------------------- ---------- ---------- ---------- ----------
Per share data (for a share outstanding
Throughout each period):
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE - BEGINNING OF PERIOD. . . $ 14.33 $ 12.10 $ 14.24 $ 11.38 $ 10.00
--------------------- ---------- ---------- ---------- ----------
Income from investment operations:
Net investment income*. . . . . . . . . 0.21 0.18 0.13 0.10 0.15
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . 3.57 3.06 (0.93) 2.92 1.36
--------------------- ---------- ---------- ---------- ----------
Total from investment operations . . . . . 3.78 3.24 (0.80) 3.02 1.51
--------------------- ---------- ---------- ---------- ----------
Less distributions to shareholders:
From net investment income . . . . . . . (0.22) (0.22) (0.12) (0.08) (0.13)
From net realized gain on investments. . (1.44) (0.79) (1.22) (0.08) --
--------------------- ---------- ---------- ---------- ----------
Total distributions to shareholders. . . . (1.66) (1.01) (1.34) (0.16) (0.13)
--------------------- ---------- ---------- ---------- ----------
NET ASSET VALUE - END OF PERIOD. . . . . . $ 16.45 $ 14.33 $ 12.10 $ 14.24 $ 11.38
===================== ========== ========== ========== ==========
Total return1. . . . . . . . . . . . . . . 28.35% 26.34% (5.99%) 26.77% 15.21%
Ratios (to average net assets) /
Supplemental Data:
Expenses*. . . . . . . . . . . . . . . 1.20% 1.20% 1.20% 1.20% 1.20%
Net investment income* . . . . . . . . 1.26% 0.93% 1.25% 0.94% 1.71%
Portfolio turnover . . . . . . . . . . . . 84% 96% 60% 115% 95%
NET ASSETS - END OF PERIOD
(000's omitted) . . . . . . . . . . . . . $ 30,007 $ 21,515 $ 18,705 $ 9,852 $ 1,574
===================== ========== ========== ========== ==========
</TABLE>
* The investment advisor did not impose all or a portion of its management fee
and in some periods
paid a portion of the Series' expenses. If these expenses had been incurred by
the Series, and had
1996 expenses been limited to that allowed by state securities law, the net
investment income per share and the ratios would have been as follows:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Net investment income . . . . . $0.19 $0.17 $0.12 $0.06 $0.04
Ratios (to average net assets):
Expenses . . . . . . . . . . 1.34% 1.28% 1.32% 1.55% 2.50%
Net investment income. . . . 1.12% 0.85% 1.13% 0.59% 0.41%
</TABLE>
1 Represents aggregate total return for the period indicated.
The accompanying notes are an integral part of the financial statements.
45
<PAGE>
Notes to Financial Statements
1. ORGANIZATION
Defensive Series, Blended Asset Series I, Blended Asset Series II, and Maximum
Horizon Series (each the "Series") are no-load diversified series of Exeter
Fund, Inc. (the "Fund"). The Fund is organized in Maryland and is registered
under the Investment Company Act of 1940, as amended, as an open-end management
investment company.
These series are asset allocation funds. Each invests in a combination of
stocks, bonds, and cash and is managed according to specific goals. The goals
are as follows: Defensive Series - primary goal is preservation of capital;
secondary goal is long-term growth of capital. Blended Asset I - equal emphasis
on long-term growth of capital and preservation of capital. Blended Asset II -
primary goal is long-term growth of capital; secondary goal is preservation of
capital. Maximum Horizon Series - long-term growth of capital.
Each Series is authorized to issue five classes of shares (Class A, B, C, D, and
E). Currently, only Class A shares have been issued. Each class of shares is
substantially the same, except that class-specific distribution and shareholder
servicing expenses are borne by the specific class of shares to which they
relate.
The total authorized capital stock of the Fund consists of 1.7 billion shares of
common stock each having a par value of $0.01. As of October 31, 2000, 1.4
billion shares have been designated in total among 28 series, of which 37.5
million each have been designated as Defensive Series Class A, Blended Asset
Series I Class A, and Blended Asset Series II Class A Common Stock, and 75
million have been designated as Maximum Horizon Series Class A Common Stock.
2. SIGNIFICANT ACCOUNTING POLICIES
SECURITY VALUATION
Portfolio securities, including domestic equities, foreign equities, options and
corporate bonds, listed on an exchange are valued at the latest quoted sales
price of the exchange on which the security is traded most extensively.
Securities not traded on valuation date or securities not listed on an exchange
are valued at the latest quoted bid price.
Debt securities, including government bonds and mortgage backed securities, will
normally be valued on the basis of evaluated bid prices provided by the Fund's
pricing service.
Securities for which representative valuations or prices are not available from
the Fund's pricing service are valued at fair value as determined in good faith
by the Advisor under procedures established by and under the general supervision
and responsibility of the Fund's Board of Directors.
Short-term investments that mature in sixty days or less are valued at amortized
cost which approximates market value.
SECURITY TRANSACTIONS, INVESTMENT INCOME AND EXPENSES
Security transactions are accounted for on trade date. Dividend income is
recorded on the ex-dividend date, except that if the ex-dividend date has
passed, certain dividends from foreign securities are recorded as soon as the
Fund is informed of the ex-dividend date. Interest income and expenses are
recorded on an accrual basis.
Most expenses of the Fund can be attributed to a specific series. Expenses
which cannot be directly attributed are apportioned among the series in the Fund
in such a manner as deemed equitable by the Fund's Directors, taking into
consideration, among other things, the nature and type of expense.
46
<PAGE>
Notes to Financial Statements
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
SECURITY TRANSACTIONS, INVESTMENT INCOME AND EXPENSES (continued)
Interest income, including amortization of premium and accretion of discount
securities, is earned from settlement date and accrued daily. Discounts on
original issue discount bonds are accreted according to yield-to-maturity basis.
The Series uses the identified cost method for determining realized gain or loss
on investments for both financial statement and federal income tax reporting
purposes.
FEDERAL INCOME TAXES
The Series' policy is to comply with the provisions of the Internal Revenue Code
applicable to regulated investment companies. The Series is not subject to
federal income or excise tax to the extent that the Series distributes to
shareholders each year its taxable income, including any net realized gains on
investments in accordance with requirements of the Internal Revenue Code.
Accordingly, no provision for federal income tax or excise tax has been made in
the financial statements.
DISTRIBUTIONS OF INCOME AND GAINS
Distributions to shareholders of net investment income are made semi-annually.
Distributions of net realized gains are distributed annually. An additional
distribution may be necessary to avoid taxation of the Series. Distributions
are recorded on the ex-dividend date.
The timing and characterization of certain income and capital gains are
determined in accordance with federal income tax regulations which may differ
from generally accepted accounting principles. These differences are primarily
due to differing book and tax treatments in timing of the recognition of gains
or losses, including foreign currency gains and losses and losses deferred due
to wash sales, investments in passive foreign investment companies, and the
Series' use of the tax accounting practice known as equalization. As a result,
net investment income (loss) and net investment gain (loss) on investment
transactions for a reporting period may differ from distributions to
shareholders during such period. As a result, the Series may periodically make
reclassifications among its capital accounts without impacting the Series' net
asset value. Any such reclassifications are not reflected in the financial
highlights.
For the year ended October 31, 2000, Maximum Horizon Series distributed $600,229
of long-term capital gains and Blended Asset Series I distributed $154,040 of
long-term capital gains.
FOREIGN CURRENCY TRANSLATION
The books and records of the Fund are maintained in U.S. dollars. Foreign
currencies, investments and other assets and liabilities are translated into
U.S. dollars at the current exchange rates. Purchases and sales of investment
securities and income and expenses are translated on the respective dates of
such transactions. Net realized foreign currency gains and losses resulting
from changes in exchange rates include foreign currency gains and losses between
trade date and settlement date of securities transactions, foreign currency
transactions and the difference between the amounts of interest and dividends
recorded on the books of a Fund and the amounts actually received. The effects
of the changes in foreign currency exchange rates on securities are not
separately stated in the Statements of Operations from the effects of changes in
market prices of those securities, but are included with the net realized and
unrealized gain or loss on securities.
47
<PAGE>
Notes to Financial Statements
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
OTHER
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 the disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
3. TRANSACTIONS WITH AFFILIATES
The Series has an investment advisory agreement with Manning & Napier
Advisors, Inc., dba Exeter Asset Management (the "Advisor"), for which the
Series pays the Advisor a fee, computed daily and payable monthly, at an annual
rate of 0.80% for Defensive Series and 1.0% for Blended Asset Series I, Blended
Asset Series II and Maximum Horizon Series, of the Series' average daily net
assets.
Under the Fund's Investment Advisory Agreement (the "Agreement"), personnel
of the Advisor provide the Series with advice and assistance in the choice of
investments and the execution of securities transactions, and otherwise maintain
the Series' organization. The Advisor also provides the Fund with necessary
office space and fund administration services. The salaries of all officers of
the Fund and of all Directors who are "affiliated persons" of the Fund or of the
Advisor, and all personnel of the Fund or of the Advisor performing services
relating to research, statistical and investment activities are paid by the
Advisor. Each "non-affiliated" Director receives an annual stipend, which is
allocated among all the series of the Fund. In addition, these Directors also
receive a per meeting fee for each series of the Fund
The Advisor has contractually agreed to waive its fee and, if necessary, pay
other expenses of the Series in order to maintain total expenses for the Series
at no more than 1.00% for Defensive Series and 1.20% for Blended Asset Series I
and Maximum Horizon, of average daily net assets each year. Accordingly, the
Advisor did not impose any of its fee and assumed expenses amounting to $20,790
for Defensive Series and waived fees of $49,793 for Blended Asset Series I and
$37,313 for Maximum Horizon Series, for the year ended October 31, 2000, which
is reflected as a reduction of expenses on the Statement of Operations.
The Advisor also acts as the transfer, dividend paying and shareholder
servicing agent for the Fund. For these services, the Series pays a fee which
is calculated as a percentage of the average daily net assets at an annual rate
of 0.024%.
Manning & Napier Investor Services, Inc., a registered broker-dealer
affiliate of the Advisor, acts as distributor for the Fund's shares. The
services of Manning & Napier Investor Services, Inc. are provided at no
additional cost to the Fund.
Effective April 2000 the Advisor became the Fund's accounting services agent.
For these services, the Fund will pay the Advisor a fee of 0.04% of each Series'
daily net assets calculated daily and payable monthly, with a minimum annual fee
of $48,000 per Series plus out-of-pocket expenses. In addition, the Fund will
pay the Advisor an additional annual fee of $10,000 for each additional class of
a Series. The Advisor has entered into an agreement with BISYS Fund Services
Ohio, Inc. under which BISYS will serve as sub-accounting services agent.
48
<PAGE>
Notes to Financial Statements
4. PURCHASES AND SALES OF SECURITIES
For the year ended October 31, 2000, purchases and sales of securities were
as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
Fund Other Issuer Government Other Issuers Government
---------------- ------------- ----------- -------------- -----------
<S> <C> <C> <C> <C>
Defensive. . . . $ 540,504 $ 980,953 $ 780,349 $ 810,745
Blended Asset I. 6,198,478 4,264,238 11,607,648 10,376,080
Blended Asset II 36,316,631 39,200,939 33,767,527 26,647,646
Maximum Horizon. 19,524,917 3,209,516 19,557,709 1,098,326
</TABLE>
5. CAPITAL STOCK TRANSACTIONS
Transactions in shares of Class A Common Stock were:
<TABLE>
<CAPTION>
For the Year For the Year
Ended 10/31/00 Ended 10/31/99
--------------- ----------------
Shares Amount Shares Amount
--------------- ---------------- ----------- -------------
<S> <C> <C> <C> <C>
Defensive:
Sold . . . . . 117,707 $ 1,249,049 149,871 $ 1,614,006
Reinvested . . 22,945 237,352 21,934 233,158
Repurchased. . (162,468) (1,739,927) (245,016) (2,631,100)
--------------- ---------------- ----------- -------------
Net change . . (21,816) ($253,526) (73,211) ($783,936)
=============== ================ =========== =============
Blended Asset I:
Sold . . . . . 389,011 $ 4,423,210 724,072 $ 08,171,386
Reinvested . . 124,849 1,360,267 255,829 2,797,421
Repurchased. . (1,427,600) (16,389,928) (1,370,353) (15,530,954)
--------------- ---------------- ----------- -------------
Net change . . (913,740) ($10,606,451) (390,452) ($4,562,147)
=============== ================ =========== =============
Blended Asset II:
Sold . . . . . 3,248,049 $ 43,840,287 1,929,179 $ 24,742,814
Reinvested . . 387,122 4,769,878 479,972 5,789,528
Repurchased. . (2,361,924) (31,046,546) (2,526,247) (32,556,422)
--------------- ---------------- ----------- -------------
Net change . . 1,273,247 $ 17,563,619 (117,096) ($2,024,080)
=============== ================ =========== =============
Maximum Horizon:
Sold . . . . . 864,363 $ 13,018,275 498,281 $ 6,719,574
Reinvested . . 172,570 2,424,742 105,342 1,255,526
Repurchased. . (714,635) (10,719,922) (648,323) (9,007,895)
--------------- ---------------- ----------- -------------
Net change . . 322,298 $ 4,723,095 (44,700) ($1,032,795)
=============== ================ =========== =============
</TABLE>
The Advisor owned 16,917 shares of Maximum Horizon Series and 21,921 shares of
Defensive Series on October 31, 2000 and 15,130 shares of Maximum Horizon Series
and 20,825 shares of Defensive Series on October 31, 1999.
49
<PAGE>
Notes to Financial Statements
6. FINANCIAL INSTRUMENTS
The Series may trade in financial instruments with off-balance sheet risk in the
normal course of their investing activities to assist in managing exposure to
various market risks. These financial instruments include written options,
forward foreign currency exchange contracts, and futures contracts and may
involve, to a varying degree, elements of risk in excess of the amounts
recognized for financial statement purposes. No such investments were held by
the Series on October 31, 2000.
7. FOREIGN SECURITIES
Investing in securities of foreign companies and foreign governments involves
special risks and considerations not typically associated with investing in
securities of domestic companies and the United States Government. These risks
include revaluation of currencies and future adverse political and economic
developments. Moreover, securities of foreign companies and foreign governments
may be less liquid and their prices more volatile than those of securities of
comparable domestic companies and the United States Government.
50
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and Shareholders of Exeter Fund, Inc. - Defensive
Series, Blended Asset Series I, Blended Asset Series II, and Maximum Horizon
Series:
In our opinion, the accompanying statements of assets and liabilities, including
the investment portfolios, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of the Exeter Fund, Inc.: Defensive
Series, Blended Asset Series I, Blended Asset Series II, and Maximum Horizon
Series (the "Funds") at October 31, 2000, the results of their operations for
the year then ended, and the changes in their net assets and the financial
highlights for the two years then ended, in conformity with accounting
principles generally accepted in the United States of America. These financial
statements and financial highlights (hereafter referred to as "financial
statements") are the responsibility of the Fund's management; our responsibility
is to express an opinion on these financial statements based on our audits. We
conducted our audits of these financial statements in accordance with auditing
standards generally accepted in the United States of America, which require that
we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall financial
statement presentation. We believe that our audits, which included confirmation
of securities at October 31, 2000 by correspondence with the custodian, provide
a reasonable basis for our opinion. The financial highlights of the Funds for
the periods ended October 31, 1998, 1997, and 1996 and December 31, 1995 were
audited by other independent accountants whose report dated December 4, 1998
expressed an unqualified opinion on those highlights.
PricewaterhouseCoopers LLP
Boston, Massachusetts
December 15, 2000
51
<PAGE>
<PAGE>
Exeter Fund, Inc.
Annual Report
October 31, 2000
PureMarkSM Series
<PAGE>
Management Discussion and Analysis
DEAR SHAREHOLDERS:
The PureMarkSM Series is a passively managed portfolio of common stocks designed
to maintain risk and sector characteristics consistent with the Russell 3000
Index while screening to eliminate companies whose primary business includes
tobacco, alcohol, pornography, gambling or abortion. Because the Series'
investments are based on the Russell 3000 rather than being actively managed,
the same factors that affect the Index's performance also affect that of the
Series.
After experiencing historic growth over the last few years, the economy has
shown signs of weakness in the year 2000. As a result, the stock market has
continued to exhibit significant levels of volatility. Many of the areas that
were hottest last year have been heavily impacted by this environment, and we
are seeing a performance shift from growth to value. This year, the Russell
3000 Index is virtually flat with a 0.25% total return through October 31st.
Even so, this broad market index has managed a better return than the S&P 500
Index, which has been unable to even keep its head above water, and is down
1.81% so far this year.
Technology stocks have continued to experience difficulties since our last
correspondence. Over these last six months, the technology sector of the
Russell 3000 Index has declined 14.59%. Given that this sector carries the
most weight and comprises more than one-quarter of the index in total, this
decline obviously carries a heavy impact. On the upside, the financial sector
has done extremely well over the last six months to help offset the negative
impact of technology. The financial stocks, which comprise close to one-fifth
of the index, experienced a total return of 22.40% during this period.
On July 1, 2000, Russell reconstituted the Russell 3000 Index. Russell
performs this annual reconstitution in order to realign the index to accurately
represent the 3,000 largest companies in the U.S. stock market. In turn, we
also performed a significant re-balance of the PureMarkSM Series in July in
order to continue to maintain risk and sector characteristics similar to those
of the index. At that time, we also took the opportunity to increase the number
of stocks in the Series to approximately 500 securities, as growth in the Series
this year has allowed for inclusion of more stocks. This will also allow us to
more closely track the composition of the index. As always, we continue to
screen our pool of acceptable holdings and closely monitor the characteristics
of the Russell 3000 Index, and we will perform additional re-balances when
necessary.
We appreciate the opportunity to serve your socially responsible investment
needs.
Sincerely,
EXETER ASSET MANAGEMENT
1
<PAGE>
Performance Update as of October 31, 2000
Exeter Fund, Inc. - PureMarkSM Series Class A
Total Return
Through Growth of $10,000 Average
10/31/00 Investment Cumulative Annual
Inception 1 $10,240 2.40% NA
Russell 3000 R Index
Total Return
Through Growth of $10,000 Average
10/31/00 Investment Cumulative Annual
Inception 1 $10,612 6.12% NA
The value of a $10,000 investment in the Exeter Fund, Inc. - PureMarkSM Series
Class A from its inception (2/22/00) to present (10/31/00) as compared to the
Russell 3000 R Index for the same time period. 2
[graphic]
[line chart]
Data for line chart to follow:
Exeter Fund, Inc. Russell 3000 R
Date PureMark Series Class A Index
02/22/00 10,000 10,000
02/29/00 10,400 10,265
03/31/00 11,010 11,069
04/30/00 10,550 10,679
05/31/2000 10,290 10,379
06/30/2000 10,490 10,686
07/31/2000 10,200 10,497
08/31/2000 10,830 11,276
09/30/2000 10,340 10,765
10/31/2000 10,240 10,612
1 Class A and Index performance are calculated from February 22, 2000, the
Class's inception date. The Class's performance is historical and may not be
indicative of future results.
2 The Russell 3000 R Index is an unmanaged index that consists of the 3,000
largest U.S. companies, based on market capitalization. Members of the Index
represent only U.S. common stocks that are invested in the U.S. equity markets.
The Index returns are based on a market capitalization weighted average of
relative price changes of the component stocks plus dividends whose
reinvestments are compounded daily. Unlike the Class returns, the Index
returns do not reflect any fees or expenses.
2
<PAGE>
Performance Update as of October 31, 2000
Exeter Fund, Inc. - PureMarkSM Series Class C
Total Return
Through Growth of $10,000 Average
10/31/00 Investment Cumulative Annual
Inception 1 $9,710 -2.90% NA
Russell 3000 R Index
Total Return
Through Growth of $10,000 Average
10/31/00 Investment Cumulative Annual
Inception 1 $9,785 -2.15% NA
The value of a $10,000 investment in the Exeter Fund, Inc. - PureMarkSM Series
Class C from its inception (8/7/00) to present (10/31/00) as compared to the
Russell 3000 R Index for the same time period. 2
[graphic]
[line chart]
Data for line chart to follow:
Exeter Fund, Inc. Russell 3000 R
Date PureMark Series Class C Index
08/07/00 10,000 10,000
08/31/00 10,280 10,397
09/30/00 9,810 9,926
10/31/00 9,710 9,785
1 Class C and Index performance are calculated from August 7, 2000, the Class's
inception date. The Class's performance is historical and may not be indicative
of future results.
2 The Russell 3000 R Index is an unmanaged index that consists of the 3,000
largest U.S. companies, based on market capitalization. Members of the Index
represent only U.S. common stocks that are invested in the U.S. equity markets.
The Index returns are based on a market capitalization weighted average of
relative price changes of the component stocks plus dividends whose
reinvestments are compounded daily. Unlike the Class returns, the Index
returns do not reflect any fees or expenses.
3
<PAGE>
Performance Update as of October 31, 2000
Exeter Fund, Inc. - PureMarkSM Series Class E
Total Return
Through Growth of $10,000 Average
10/31/00 Investment Cumulative Annual
Inception 1 $10,037 0.37% NA
Russell 3000 R Index
Total Return
Through Growth of $10,000 Average
10/31/00 Investment Cumulative Annual
Inception 1 $10,875 8.75% NA
The value of a $10,000 investment in the Exeter Fund, Inc. - PureMarkSM Series
Class E from its inception (11/10/99) to present (10/31/00) as compared to the
Russell 3000 R Index for the same time period. 2
[graphic]
[line chart]
Data for line chart to follow:
Exeter Fund, Inc. Russell 3000 R
Date PureMark Series Class E Index
11/10/99 10,000 10,000
11/30/99 9,820 10,197
12/31/99 10,297 10,847
01/31/00 9,967 10,422
02/29/00 10,187 10,519
03/31/00 10,778 11,343
04/30/00 10,347 10,943
05/31/2000 10,087 10,636
06/30/2000 10,287 10,951
07/31/2000 9,997 10,757
08/31/2000 10,618 11,555
09/30/2000 10,137 11,032
10/31/2000 10,037 10,875
1 Class E and Index performance are calculated from November 10, 1999, the
Class's inception date. The Class's performance is historical and may not be
indicative of future results.
2 The Russell 3000 R Index is an unmanaged index that consists of the 3,000
largest U.S. companies, based on market capitalization. Members of the Index
represent only U.S. common stocks that are invested in the U.S. equity markets.
The Index returns are based on a market capitalization weighted average of
relative price changes of the component stocks plus dividends whose
reinvestments are compounded daily. Unlike the Class returns, the Index
returns do not reflect any fees or expenses.
4
<PAGE>
Investment Portfolio - October 31, 2000
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
COMMON STOCK - 98.88%
<S> <C> <C>
APPAREL MANUFACTURING - 0.16%
Polo Ralph Lauren Corp.*. . . . . . . . . . . . . . . . . 572 $ 11,225
---------
AUTOMOTIVE REPAIR SERVICES & PARKING - 0.18%
Bandag, Inc.. . . . . . . . . . . . . . . . . . . . . . . 167 5,960
Ryder System, Inc.. . . . . . . . . . . . . . . . . . . . 344 6,794
---------
12,754
---------
BUSINESS SERVICES - 12.03%
ADVERTISING AGENCIES - 0.23%
Grey Global Group, Inc. . . . . . . . . . . . . . . . . 5 2,800
Interpublic Group of Companies, Inc.. . . . . . . . . . 129 5,539
Omnicom Group, Inc. . . . . . . . . . . . . . . . . . . 84 7,749
---------
16,088
---------
COMPUTER INTEGRATED SYSTEMS DESIGN - 1.34%
3Com Corp.* . . . . . . . . . . . . . . . . . . . . . . 134 2,379
BroadVision, Inc.*. . . . . . . . . . . . . . . . . . . 138 4,105
Computer Sciences Corp.*. . . . . . . . . . . . . . . . 87 5,481
National Instruments Corp.* . . . . . . . . . . . . . . 119 5,556
Radiant Systems, Inc.*. . . . . . . . . . . . . . . . . 294 5,421
Sun Microsystems, Inc.* . . . . . . . . . . . . . . . . 626 69,408
---------
92,350
---------
COMPUTER PROGRAMMING SERVICES - 0.50%
Com21, Inc.*. . . . . . . . . . . . . . . . . . . . . . 419 4,530
Electronic Data Systems Corp. . . . . . . . . . . . . . 195 9,153
New Era of Networks, Inc.*. . . . . . . . . . . . . . . 747 11,625
Portal Software, Inc.*. . . . . . . . . . . . . . . . . 69 2,428
VeriSign, Inc.* . . . . . . . . . . . . . . . . . . . . 51 6,732
---------
34,468
---------
COMPUTER PROCESSING & DATA PREPARATION SERVICES - 0.83%
Automatic Data Processing, Inc. . . . . . . . . . . . . 287 18,745
Ceridian Corp.* . . . . . . . . . . . . . . . . . . . . 491 12,275
Deluxe Corp.. . . . . . . . . . . . . . . . . . . . . . 742 16,741
First Data Corp.. . . . . . . . . . . . . . . . . . . . 190 9,524
---------
57,285
---------
PREPACKAGED SOFTWARE - 6.66%
Adobe Systems, Inc. . . . . . . . . . . . . . . . . . . 104 7,911
Ariba, Inc.*. . . . . . . . . . . . . . . . . . . . . . 84 10,615
BEA Systems, Inc.*. . . . . . . . . . . . . . . . . . . 152 10,906
BMC Software, Inc.* . . . . . . . . . . . . . . . . . . 215 4,367
Brocade Communications Systems, Inc.* . . . . . . . . . 45 10,232
CCC Information Services Group, Inc.* . . . . . . . . . 589 4,049
Computer Associates International, Inc. . . . . . . . . 508 16,193
</TABLE>
The accompanying notes are an integral part of the financial statements.
5
<PAGE>
Investment Portfolio - October 31, 2000
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------- --------
<S> <C> <C>
Prepackaged Software (continued)
DST Systems, Inc.* . . . . . . . . . . 306 $18,857
i2 Technologies, Inc.* . . . . . . . . 51 8,670
Internet Security Systems* . . . . . . 281 24,798
Intuit, Inc.*. . . . . . . . . . . . . 100 6,144
Microsoft Corp.* . . . . . . . . . . . 2,618 180,315
Oracle Corp.*. . . . . . . . . . . . . 2,856 94,248
Rational Software Corp.* . . . . . . . 70 4,178
Siebel Systems, Inc.*. . . . . . . . . 186 19,518
TIBCO Software, Inc.*. . . . . . . . . 82 5,166
Transaction Systems Architects, Inc.*. 331 4,468
VERITAS Software Corp.*. . . . . . . . 186 26,229
Vignette Corp.*. . . . . . . . . . . . 94 2,802
---------
459,666
---------
MISCELLANEOUS - 2.47%
ABM Industries, Inc. . . . . . . . . . 154 4,302
Akamai Technologies, Inc.* . . . . . . 43 2,193
America Online, Inc.*. . . . . . . . . 951 47,959
At Home Corp. - Series A*. . . . . . . 219 2,258
Carreker Corp.*. . . . . . . . . . . . 494 9,139
Cendant Corp.* . . . . . . . . . . . . 337 4,044
ChoicePoint, Inc.* . . . . . . . . . . 501 25,645
CMGI, Inc.*. . . . . . . . . . . . . . 145 2,447
Comdisco, Inc. . . . . . . . . . . . . 800 9,850
eBay, Inc.*. . . . . . . . . . . . . . 109 5,614
Ecolab, Inc. . . . . . . . . . . . . . 601 23,552
InfoSpace, Inc.* . . . . . . . . . . . 118 2,375
Inktomi Corp.* . . . . . . . . . . . . 45 2,855
Internet Capital Group, Inc.*. . . . . 111 1,471
Sotheby's Holdings, Inc.*. . . . . . . 340 9,244
Rollins, Inc.. . . . . . . . . . . . . 247 4,461
Yahoo!, Inc.*. . . . . . . . . . . . . 220 12,897
---------
170,306
---------
830,163
---------
CHEMICAL & ALLIED PRODUCTS - 8.91%
BIOLOGICAL PRODUCTS - 0.81%
Amgen, Inc.* . . . . . . . . . . . . . 417 24,160
Biogen, Inc.*. . . . . . . . . . . . . 69 4,153
Chiron Corp.*. . . . . . . . . . . . . 74 3,205
Gilead Sciences, Inc.* . . . . . . . . 45 3,870
Hyseq, Inc.* . . . . . . . . . . . . . 180 5,231
Immunex Corp.* . . . . . . . . . . . . 193 8,215
MedImmune, Inc.* . . . . . . . . . . . 109 7,126
---------
55,960
---------
</TABLE>
The accompanying notes are an integral part of the financial statements.
6
<PAGE>
Investment Portfolio - October 31, 2000
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------- --------
<S> <C> <C>
SOAP, DETERGENTS & CLEANING PRODUCTS- 1.57%
Alberto Culver Co. - Class B. . . . . . . . . . . 487 $16,345
Avon Products, Inc. . . . . . . . . . . . . . . . 122 5,917
Clorox Co.. . . . . . . . . . . . . . . . . . . . 112 4,998
Colgate-Palmolive Co. . . . . . . . . . . . . . . 275 16,159
Estee Lauder Companies, Inc. - Class A. . . . . . 118 5,480
Gillette Co.. . . . . . . . . . . . . . . . . . . 540 18,832
Proctor & Gamble Co.. . . . . . . . . . . . . . . 572 40,862
---------
108,593
---------
PHARMACEUTICAL PREPARATIONS - 5.45%
Abbott Laboratories . . . . . . . . . . . . . . . 779 41,141
Coulter Pharmaceutical, Inc.* . . . . . . . . . . 177 6,781
Eli Lilly & Co. . . . . . . . . . . . . . . . . . 519 46,386
Forest Laboratories, Inc.*. . . . . . . . . . . . 36 4,770
Genentech, Inc.*. . . . . . . . . . . . . . . . . 264 21,780
Genzyme Corp.*. . . . . . . . . . . . . . . . . . 197 13,987
Ligland Pharmaceuticals, Inc. - Class B*. . . . . 625 9,297
Merck & Co., Inc. . . . . . . . . . . . . . . . . 1,251 112,512
Pfizer, Inc.. . . . . . . . . . . . . . . . . . . 1,823 78,731
Schering-Plough Corp. . . . . . . . . . . . . . . 749 38,714
Sepracor, Inc.* . . . . . . . . . . . . . . . . . 31 2,112
---------
376,211
---------
MISCELLANEOUS - 1.08%
Allergan, Inc. . . . . . . . . . . . . . . . . . 61 5,128
Church & Dwight Co., Inc. . . . . . . . . . . . . 241 4,760
Dow Chemical Co.. . . . . . . . . . . . . . . . . 307 9,402
E.I. du Pont de Nemours and Co. . . . . . . . . . 473 21,462
PPG Industries, Inc.. . . . . . . . . . . . . . . 540 24,097
RPM, Inc. . . . . . . . . . . . . . . . . . . . . 588 5,255
The Scotts Co.* . . . . . . . . . . . . . . . . . 127 4,540
---------
74,644
---------
615,408
---------
COAL MINING - 0.01%
Penn Virginia Corp. . . . . . . . . . . . . . . . . 25 663
--------
COMMUNICATIONS - 7.68%
RADIO & TELEVISION BROADCASTING STATIONS - 1.59%
BHC Communications, Inc. . . . . . . . . . . . . 72 10,368
Cablevision Systems Corp. - Class A* . . . . . . 75 5,588
Chris-Craft Industries, Inc.*. . . . . . . . . . 194 14,259
Clear Channel Communications, Inc.*. . . . . . . 240 14,415
Comcast Corp.* . . . . . . . . . . . . . . . . . 466 18,989
Cox Communications, Inc.*. . . . . . . . . . . . 290 12,778
</TABLE>
The accompanying notes are an integral part of the financial statements.
7
<PAGE>
Investment Portfolio - October 31, 2000
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------- --------
<S> <C> <C>
RADIO & TELEVISION BROADCASTING STATIONS (continued)
Cox Radio, Inc.* . . . . . . . . . . . . . 467 $10,624
Infinity Broadcasting Corp.* . . . . . . . 519 17,257
United Television, Inc.. . . . . . . . . . 17 2,278
Univision Communications, Inc.*. . . . . . 78 2,984
---------
109,540
---------
TELEPHONE COMMUNICATIONS - 5.37%
ALLTEL Corp. . . . . . . . . . . . . . . . 145 9,343
AT&T Corp. . . . . . . . . . . . . . . . . 1,834 42,526
AT&T Wireless Group* . . . . . . . . . . . 1,057 26,359
BellSouth Corp.. . . . . . . . . . . . . . 904 43,674
CFW Communications Co.*. . . . . . . . . . 103 2,047
Exodus Communications, Inc.* . . . . . . . 153 5,135
Global TeleSystems, Inc.*. . . . . . . . . 2,063 5,544
Metromedia Fiber Network, Inc.*. . . . . . 248 4,712
Qwest Communications International, Inc.*. 356 17,310
Redback Networks, Inc.*. . . . . . . . . . 84 8,941
SBC Communications, Inc. . . . . . . . . . 1,545 89,127
Sprint Corp. . . . . . . . . . . . . . . . 418 10,659
Sprint Corp. (PCS Group)*. . . . . . . . . 397 15,136
US LEC Corp. - Class A*. . . . . . . . . . 77 462
Verizon Communications . . . . . . . . . . 738 42,666
VoiceStream Wireless Corp.*. . . . . . . . 56 7,364
Williams Communications Group, Inc.* . . . 236 4,322
WorldCom, Inc.*. . . . . . . . . . . . . . 1,312 31,160
XO Communications, Inc.* . . . . . . . . . 117 3,947
---------
370,434
---------
MISCELLANEOUS - 0.72%
Avaya, Inc.* . . . . . . . . . . . . . . . 139 1,868
CT Communications, Inc.. . . . . . . . . . 89 1,786
Electric Lightwave, Inc.*. . . . . . . . . 361 2,076
Level 3 Communications, Inc.*. . . . . . . 182 8,679
McLeodUSA, Inc. - Class A* . . . . . . . . 260 5,005
Nextel Communications, Inc.* . . . . . . . 300 11,531
NTL, Inc.* . . . . . . . . . . . . . . . . 68 2,988
PanAmSat Corp.*. . . . . . . . . . . . . . 468 15,678
---------
49,611
---------
529,585
---------
CONSTRUCTION - 0.21%
Chemed Corp.. . . . . . . . . . . . . . . . . 136 4,471
Kaufman & Broad Home Corp.. . . . . . . . . . 330 9,817
---------
14,288
---------
</TABLE>
The accompanying notes are an integral part of the financial statements.
8
<PAGE>
Investment Portfolio - October 31, 2000
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------- --------
<S> <C> <C>
DEPOSITORY INSTITUTIONS - 5.63%
NATIONAL COMMERCIAL BANKS - 3.05%
Bank of America Corp. . . . . . . . . . 678 $32,587
Bank of New York Company, Inc.. . . . . 310 17,844
Bank One Corp.. . . . . . . . . . . . . 418 15,257
BB&T Corp.. . . . . . . . . . . . . . . 148 4,718
Chase Manhattan Corp. . . . . . . . . . 488 22,204
First Union Corp. . . . . . . . . . . . 410 12,428
Firstar Corp. . . . . . . . . . . . . . 441 8,682
FleetBoston Financial Corp. . . . . . . 370 14,060
Mellon Financial Corp.. . . . . . . . . 201 9,698
National City Corp. . . . . . . . . . . 250 5,344
PNC Financial Services Group. . . . . . 117 7,824
State Street Corp.. . . . . . . . . . . 72 8,981
SunTrust Banks, Inc.. . . . . . . . . . 129 6,297
U.S. Bancorp. . . . . . . . . . . . . . 354 8,562
Wachovia Corp.. . . . . . . . . . . . . 88 4,752
Wells Fargo & Co. . . . . . . . . . . . 672 31,122
--------
210,360
--------
STATE COMMERCIAL BANKS - 0.89%
Fifth Third Bancorp . . . . . . . . . . 206 10,583
First Virginia Banks, Inc.. . . . . . . 388 16,054
Northern Trust Corp.. . . . . . . . . . 89 7,598
Wilmington Trust Corp.. . . . . . . . . 518 27,260
--------
61,495
--------
MISCELLANEOUS - 1.69%
Citigroup, Inc. . . . . . . . . . . . . 1,721 90,567
First Niagara Financial Group, Inc. . . 778 7,051
Richmond County Financial Corp. . . . . 461 10,833
Staten Island Bancorp, Inc. . . . . . . 431 8,324
--------
116,775
--------
388,630
--------
ELECTRIC, GAS & SANITARY SERVICES - 3.20%
COMBINED SERVICES - 0.06%
PG&E Corp.. . . . . . . . . . . . . . . 163 4,391
--------
ELECTRIC SERVICE - 2.15%
AES Corp.*. . . . . . . . . . . . . . . 163 9,210
ALLETE. . . . . . . . . . . . . . . . . 729 15,719
Alliant Energy Corp.. . . . . . . . . . 464 14,065
Calpine Corp.*. . . . . . . . . . . . . 52 4,105
Cleco Corp. . . . . . . . . . . . . . . 81 3,853
Constellation Energy Group. . . . . . . 444 18,509
Dominion Resources, Inc.. . . . . . . . 97 5,778
</TABLE>
The accompanying notes are an integral part of the financial statements.
9
<PAGE>
Investment Portfolio - October 31, 2000
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------- --------
<S> <C> <C>
ELECTRIC SERVICES (continued)
DPL, Inc. . . . . . . . . . . . . . . . . 535 $15,181
Duke Energy Corp. . . . . . . . . . . . . 150 12,966
FPL Group, Inc. . . . . . . . . . . . . . 75 4,950
Hawaiian Electric Industries, Inc.. . . . 158 5,204
Kansas City Power & Light Co. . . . . . . 448 10,780
Reliant Energy, Inc.. . . . . . . . . . . 121 4,999
Southern Co.. . . . . . . . . . . . . . . 270 7,931
WPS Resources Corp. . . . . . . . . . . . 89 2,865
Xcel Energy, Inc.. . . . . . . . . . . . 490 12,523
--------
148,638
--------
GAS PRODUCTION & DISTRIBUTION - 0.91%
AGL Resources, Inc. . . . . . . . . . . . 147 2,995
Dynegy, Inc.. . . . . . . . . . . . . . . 110 5,094
El Paso Energy Corp.. . . . . . . . . . . 105 6,582
Laclede Gas Co. . . . . . . . . . . . . . 159 3,478
National Fuel Gas Co. . . . . . . . . . . 319 17,106
New Jersey Resources Corp.. . . . . . . . 88 3,515
NICOR, Inc. . . . . . . . . . . . . . . . 454 16,032
Williams Companies, Inc.. . . . . . . . . 199 8,321
--------
63,123
--------
REFUSE - 0.08%
Waste Management, Inc.. . . . . . . . . . 293 5,860
--------
222,012
--------
ELECTRONICS & ELECTRICAL EQUIPMENT - 11.38%
COMMUNICATIONS EQUIPMENT - 2.61%
ADC Telecommunications, Inc.*. . . . . . 274 5,857
CIENA Corp.* . . . . . . . . . . . . . . 136 14,297
Comverse Technology, Inc.* . . . . . . . 68 7,599
Concord Communications, Inc.*. . . . . . 202 1,565
Juniper Networks, Inc.*. . . . . . . . . 128 24,960
L-3 Communications Holdings, Inc.* . . . 274 18,067
Lucent Technologies, Inc.. . . . . . . . 1,676 39,072
Motorola, Inc. . . . . . . . . . . . . . 764 19,052
Network Appliance, Inc.* . . . . . . . . 101 12,019
QUALCOMM, Inc.*. . . . . . . . . . . . . 320 20,835
Scientific-Atlanta, Inc. . . . . . . . . 66 4,517
Sonus Networks, Inc.*. . . . . . . . . . 57 1,967
Tellabs, Inc.* . . . . . . . . . . . . . 201 10,037
--------
179,844
--------
</TABLE>
The accompanying notes are an integral part of the financial statements.
10
<PAGE>
Investment Portfolio - October 31, 2000
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------- --------
<S> <C> <C>
COMPONENTS & ACCESSORIES - 4.72%
Advanced Micro Devices, Inc.*. . . 132 $2,987
Altera Corp.*. . . . . . . . . . . 166 6,796
Analog Devices, Inc.*. . . . . . . 165 10,725
Applied Micro Circuits Corp.*. . . 60 4,582
Atmel Corp.* . . . . . . . . . . . 206 3,077
Broadcom Corp.*. . . . . . . . . . 92 20,458
Conexant Systems, Inc.*. . . . . . 119 3,131
Intel Corp.. . . . . . . . . . . . 2,926 131,670
JDS Uniphase Corp.*. . . . . . . . 286 23,273
Linear Technology Corp.. . . . . . 150 9,684
LSI Logic Corp.* . . . . . . . . . 157 5,161
Maxim Integrated Products, Inc.* . 124 8,223
Mercury Computer Systems, Inc.*. . 246 7,626
Molex, Inc.. . . . . . . . . . . . 87 4,698
National Semiconductor Corp.*. . . 107 2,782
Photronics, Inc.*. . . . . . . . . 11 248
PMC-Sierra, Inc.*. . . . . . . . . 56 9,492
Rambus, Inc.*. . . . . . . . . . . 50 2,247
Sanmina Corp.* . . . . . . . . . . 50 5,716
SDL, Inc.* . . . . . . . . . . . . 22 5,703
Texas Instruments, Inc.. . . . . . 812 39,839
Vitesse Semiconductor Corp.* . . . 88 6,155
Xilinx, Inc.*. . . . . . . . . . . 160 11,590
--------
325,863
--------
MISCELLANEOUS - 4.05%
Baldor Electric Co.. . . . . . . . 194 3,856
Eaton Corp.. . . . . . . . . . . . 127 8,644
Emerson Electric Co. . . . . . . . 179 13,145
Franklin Electric Co., Inc.. . . . 19 1,294
General Electric Co. . . . . . . . 4,364 239,202
Imation Corp.* . . . . . . . . . . 145 2,873
National Presto Industries, Inc. . 103 3,129
National Service Industries, Inc.. 337 6,887
REMEC, Inc.. . . . . . . . . . . . 19 566
--------
279,596
--------
785,303
--------
FABRICATED METAL PRODUCTS - 0.43%
Griffon Corp.*. . . . . . . . . . . . 584 4,453
Illinois Tool Works, Inc. . . . . . . 141 7,834
Masco Corp. . . . . . . . . . . . . . 927 17,323
--------
29,610
--------
</TABLE>
The accompanying notes are an integral part of the financial statements.
11
<PAGE>
Investment Portfolio - October 31, 2000
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------- --------
<S> <C> <C>
FOOD & KINDRED PRODUCTS - 3.75%
BAKERY PRODUCTS - 0.47%
Keebler Foods Co.. . . . . . . . . . . . . . . 126 $ 5,103
Nabisco Group Holdings Corp. . . . . . . . . . 152 4,389
Nabisco Holdings Corp. . . . . . . . . . . . . 120 6,487
Ralston-Ralston Purina Group . . . . . . . . . 691 16,757
--------
32,736
--------
CANDY & CONFECTIONERY PRODUCTS - 0.33%
Hershey Foods Corp.. . . . . . . . . . . . . . 167 9,070
Lance, Inc.. . . . . . . . . . . . . . . . . . 14 141
Tootsie Roll Industries, Inc.. . . . . . . . . 235 9,018
Wm. Wrigley Jr. Co.. . . . . . . . . . . . . . 53 4,197
--------
22,426
--------
FRUITS & VEGETABLES & RELATED PRODUCTS - 0.56%
Campbell Soup Co.. . . . . . . . . . . . . . . 201 5,879
ConAgra, Inc.. . . . . . . . . . . . . . . . . 198 4,232
H.J. Heinz Co. . . . . . . . . . . . . . . . . 171 7,171
Lancaster Colony Corp. . . . . . . . . . . . . 190 4,489
The J. M. Smucker Co.. . . . . . . . . . . . . 210 4,674
Whitman Corp.. . . . . . . . . . . . . . . . . 932 12,116
--------
38,561
--------
GRAIN MILL PRODUCTS - 0.34%
Corn Products International, Inc.. . . . . . . 290 7,286
General Mills, Inc.. . . . . . . . . . . . . . 143 5,970
Kellogg Co.. . . . . . . . . . . . . . . . . . 197 4,999
Quaker Oats Co.. . . . . . . . . . . . . . . . 64 5,220
--------
23,475
--------
MISCELLANEOUS - 2.05%
Coca-Cola Co.. . . . . . . . . . . . . . . . . 1,057 63,816
Hormel Foods Corp. . . . . . . . . . . . . . . 638 10,726
McCormick & Co., Inc.. . . . . . . . . . . . . 350 11,091
PepsiCo, Inc.. . . . . . . . . . . . . . . . . 653 31,630
Sara Lee Corp. . . . . . . . . . . . . . . . . 395 8,517
Tyson Foods, Inc.. . . . . . . . . . . . . . . 1,401 15,674
--------
141,454
--------
258,652
--------
FORESTRY & TIMBER - 0.35%
Georgia Pacific Corp. (Timber Group). . . . . . . 606 17,158
Rayonier, Inc.. . . . . . . . . . . . . . . . . . 81 2,850
Weyerhaeuser Co.. . . . . . . . . . . . . . . . . 94 4,412
--------
24,420
--------
</TABLE>
The accompanying notes are an integral part of the financial statements.
12
<PAGE>
Investment Portfolio - October 31, 2000
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------- --------
<S> <C> <C>
FURNITURE & FIXTURES - 0.37%
Johnson Controls, Inc. . . . . . . . . . . . 266 $15,860
Newell Rubbermaid, Inc.. . . . . . . . . . . 512 9,824
--------
25,684
--------
GENERAL MERCHANDISE STORES - 1.75%
BJ's Wholesale Club, Inc.* . . . . . . . . . 512 16,864
Sears, Roebuck & Co. . . . . . . . . . . . . 162 4,816
Target Corp. . . . . . . . . . . . . . . . . 398 10,995
Wal-Mart Stores, Inc.. . . . . . . . . . . . 1,946 88,300
--------
120,975
--------
GROCERY STORES - 0.39%
Albertson's, Inc.. . . . . . . . . . . . . . 203 4,809
Delhaize America, Inc. . . . . . . . . . . . 181 3,077
Kroger Co.*. . . . . . . . . . . . . . . . . 395 8,912
Weis Markets, Inc. . . . . . . . . . . . . . 277 10,180
--------
26,978
--------
INDUSTRIAL & COMMERCIAL MACHINERY - 8.54%
COMPUTER & OFFICE EQUIPMENT - 7.27%
Apple Computer, Inc.*. . . . . . . . . . . 144 2,817
Bell & Howell Co.* . . . . . . . . . . . . 155 2,945
Cisco Systems, Inc.* . . . . . . . . . . . 2,949 158,877
Compaq Computer Corp.. . . . . . . . . . . 698 21,226
Dell Computer Corp.* . . . . . . . . . . . 1,100 32,450
EMC Corp.* . . . . . . . . . . . . . . . . 852 75,881
Foundry Networks, Inc.*. . . . . . . . . . 62 4,119
Gateway, Inc.* . . . . . . . . . . . . . . 131 6,761
Hewlett-Packard Co.. . . . . . . . . . . . 918 42,630
International Business Machine Corp. (IBM) 775 76,338
Jabil Circuit, Inc.* . . . . . . . . . . . 73 4,166
Lexmark International Group, Inc.* . . . . 86 3,526
Micron Electronics, Inc.*. . . . . . . . . 251 8,722
Minnesota Mining & Manufacturing Co. (3M). 171 16,523
Palm, Inc.*. . . . . . . . . . . . . . . . 420 22,496
Pitney Bowes, Inc. . . . . . . . . . . . . 124 3,681
Seagate Technology, Inc.*. . . . . . . . . 105 7,337
Solectron Corp.* . . . . . . . . . . . . . 251 11,044
--------
501,539
--------
MISCELLANEOUS - 1.27%
Applied Materials, Inc.* . . . . . . . . . 423 22,472
Baker Hughes, Inc. . . . . . . . . . . . . 148 5,088
Caterpillar, Inc.. . . . . . . . . . . . . 146 5,119
Deere & Co.. . . . . . . . . . . . . . . . 98 3,608
</TABLE>
The accompanying notes are an integral part of the financial statements.
13
<PAGE>
Investment Portfolio - October 31, 2000
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------- --------
<S> <C> <C>
MISCELLANEOUS (continued)
Dover Corp.. . . . . . . . . . . . . . . . . . 80 $ 3,395
Harris Corp. . . . . . . . . . . . . . . . . . 527 16,699
Tecumseh Products Co.. . . . . . . . . . . . . 112 4,466
Tennant Co.. . . . . . . . . . . . . . . . . . 64 2,784
Toro Co. . . . . . . . . . . . . . . . . . . . 84 2,940
United Technologies Corp.. . . . . . . . . . . 214 14,940
Varian Medical Systems, Inc.*. . . . . . . . . 123 6,012
--------
87,523
--------
589,062
--------
INSURANCE AGENTS & BROKERS - 0.22%
Marsh & McLennan Co., Inc. . . . . . . . . . . . 115 15,036
--------
INSURANCE CARRIERS - 3.11%
LIFE INSURANCE CARRIERS - 0.52%
American General Corp. . . . . . . . . . . . . 106 8,533
AXA Financial, Inc.. . . . . . . . . . . . . . 168 9,083
Cigna Corp.. . . . . . . . . . . . . . . . . . 71 8,658
MetLife, Inc.. . . . . . . . . . . . . . . . . 359 9,917
--------
36,191
--------
MEDICAL INSURANCE CARRIERS - 0.70%
Aetna, Inc.. . . . . . . . . . . . . . . . . . 71 4,105
AFLAC, Inc.. . . . . . . . . . . . . . . . . . 111 8,110
Trigon Healthcare, Inc.* . . . . . . . . . . . 183 13,119
UnitedHealth Group, Inc. . . . . . . . . . . . 74 8,094
Wellpoint Health Networks, Inc.* . . . . . . . 125 14,617
--------
48,045
--------
MULTI-LINE INSURANCE CARRIERS - 1.84%
Allstate Corp. . . . . . . . . . . . . . . . . 307 12,357
American International Group, Inc. . . . . . . 1,038 101,724
Chubb Corp.. . . . . . . . . . . . . . . . . . 74 6,248
Hartford Financial Services Group, Inc.. . . . 94 6,997
--------
127,326
--------
TITLE INSURANCE - 0.05%
Alleghany Corp.. . . . . . . . . . . . . . . . 17 3,267
--------
214,829
--------
METAL MINING - 0.03%
Cleveland-Cliffs, Inc. . . . . . . . . . . . . . 102 2,104
--------
MISCELLANEOUS MANUFACTURING INDUSTRIES - 0.18%
Tyco International Ltd.. . . . . . . . . . . . . 222 12,607
--------
MOTION PICTURE PRODUCTION & DISTRIBUTION - 0.29%
AT&T Corp. - Liberty Media Group*. . . . . . . . 1,122 20,196
--------
</TABLE>
The accompanying notes are an integral part of the financial statements.
14
<PAGE>
Investment Portfolio - October 31, 2000
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------- --------
<S> <C> <C>
MOTOR FREIGHT & WAREHOUSING - 0.49%
Arnold Industries, Inc. . . . . . . . . . . . . 2 $ 35
Heartland Express, Inc.*. . . . . . . . . . . . 160 2,780
United Parcel Service, Inc. . . . . . . . . . . 508 30,861
--------
33,676
--------
NON-DEPOSITORY CREDIT INSTITUTIONS - 2.38%
American Express Co.. . . . . . . . . . . . . . 530 31,800
Associates First Capital Corp.. . . . . . . . . 294 10,915
CIT Group, Inc. . . . . . . . . . . . . . . . . 1,454 25,354
Capital One Financial Corp. . . . . . . . . . . 71 4,482
Fannie Mae. . . . . . . . . . . . . . . . . . . 465 35,805
Freddie Mac . . . . . . . . . . . . . . . . . . 312 18,720
Household International, Inc. . . . . . . . . . 194 9,761
MBNA Corp.. . . . . . . . . . . . . . . . . . . 299 11,231
Providian Financial Corp. . . . . . . . . . . . 57 5,928
Washington Mutual, Inc. . . . . . . . . . . . . 228 10,032
--------
164,028
--------
OIL & GAS EXTRACTION - 0.72%
Berry Petroleum Co. - Class A . . . . . . . . . 165 2,836
Burlington Resources, Inc.. . . . . . . . . . . 118 4,248
Enron Corp. . . . . . . . . . . . . . . . . . . 292 23,962
Kerr-McGee Corp.. . . . . . . . . . . . . . . . 139 9,078
SEACOR SMIT, Inc.*. . . . . . . . . . . . . . . 174 7,286
St. Mary Land & Exploration Co. . . . . . . . . 108 2,531
--------
49,941
--------
PAPER & ALLIED PRODUCTS - 0.56%
Bemis Company, Inc. . . . . . . . . . . . . . . 393 10,169
International Paper Co. . . . . . . . . . . . . 160 5,860
Kimberly-Clark Corp.. . . . . . . . . . . . . . 248 16,368
Potlatch Corp.. . . . . . . . . . . . . . . . . 178 5,963
--------
38,360
--------
PETROLEUM REFINING & RELATED INDUSTRIES - 4.09%
Amerada Hess Corp.. . . . . . . . . . . . . . . 382 23,684
Ashland, Inc. . . . . . . . . . . . . . . . . . 472 15,458
Chevron Corp. . . . . . . . . . . . . . . . . . 318 26,116
Coastal Corp. . . . . . . . . . . . . . . . . . 98 7,393
Conoco Inc. - Class B . . . . . . . . . . . . . 297 8,075
Exxon Mobil Corp. . . . . . . . . . . . . . . . 1,601 142,789
Murphy Oil Corp.. . . . . . . . . . . . . . . . 355 20,568
Phillips Petroleum Co.. . . . . . . . . . . . . 116 7,163
Texaco, Inc.. . . . . . . . . . . . . . . . . . 266 15,711
Ultramar Diamond Shamrock Corp. . . . . . . . . 393 10,316
WD-40 Co. . . . . . . . . . . . . . . . . . . . 245 5,359
--------
282,632
--------
</TABLE>
The accompanying notes are an integral part of the financial statements.
15
<PAGE>
Investment Portfolio - October 31, 2000
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------- --------
<S> <C> <C>
PREFABRICATED WOOD BUILDINGS - 0.06%
Skyline Corp.. . . . . . . . . . . . . . . 187 $ 4,009
--------
PRIMARY METAL INDUSTRIES - 0.49%
Alcoa, Inc.. . . . . . . . . . . . . . . . 305 8,750
CommScope, Inc.* . . . . . . . . . . . . . 363 9,188
Hubbell, Inc. - Class B. . . . . . . . . . 674 16,134
--------
34,072
--------
PRINTING & PUBLISHING - 1.51%
Banta Corp.. . . . . . . . . . . . . . . . 233 5,374
Dow Jones & Company, Inc.. . . . . . . . . 200 11,775
Gannett Co., Inc.. . . . . . . . . . . . . 125 7,250
Knight-Ridder, Inc.. . . . . . . . . . . . 294 14,773
Lee Enterprises, Inc.. . . . . . . . . . . 257 7,100
McGraw-Hill Companies, Inc.. . . . . . . . 81 5,199
The New York Times Co. . . . . . . . . . . 485 17,824
R.H. Donnelley Corp.*. . . . . . . . . . . 149 3,371
R.R. Donnelley & Sons Co.. . . . . . . . . 686 14,749
Washington Post Co. - Class B. . . . . . . 32 17,092
--------
104,507
--------
RAILROADS - 0.21%
Burlington Northern Santa Fe Corp. . . . . 172 4,569
Kansas City Southern Industries, Inc.. . . 635 5,517
Union Pacific Corp.. . . . . . . . . . . . 100 4,687
--------
14,773
--------
REAL ESTATE INVESTMENT TRUSTS - 2.26%
Affiliated Managers Group, Inc.* . . . . . 196 11,784
AMB Property Corp. . . . . . . . . . . . . 627 14,734
Arden Realty Group, Inc. . . . . . . . . . 777 18,648
Boston Properties, Inc.. . . . . . . . . . 401 16,240
Charles E. Smith Residential Realty, Inc.. 76 3,344
Colonial Properties Trust. . . . . . . . . 234 5,748
Equity Office Properties Trust . . . . . . 395 11,899
Great Lakes REIT, Inc. . . . . . . . . . . 7 119
Home Properties of New York, Inc.. . . . . 147 3,997
IRT Property Co. . . . . . . . . . . . . . 466 3,815
Liberty Property Trust . . . . . . . . . . 592 15,651
Post Properties, Inc.. . . . . . . . . . . 215 7,512
Prime Group Realty Trust . . . . . . . . . 379 5,638
ProLogis Trust . . . . . . . . . . . . . . 587 12,327
Shurgard Storage Centers, Inc. . . . . . . 164 3,721
Storage USA, Inc.. . . . . . . . . . . . . 64 1,788
Town & Country Trust . . . . . . . . . . . 282 5,217
Washington Real Estate Investment Trust. . 186 3,720
</TABLE>
The accompanying notes are an integral part of the financial statements.
16
<PAGE>
Investment Portfolio - October 31, 2000
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------- --------
<S> <C> <C>
REAL ESTATE INVESTMENT TRUSTS (continued)
Western Properties Trust. . . . . . . . . . . . . . . . . . . . 351 $ 4,453
Westfield America, Inc. . . . . . . . . . . . . . . . . . . . . 413 5,782
--------
156,137
--------
REAL ESTATE -MISCELLANEOUS - 0.16%
Forest City Enterprises, Inc. - Class A . . . . . . . . . . . . 127 4,699
LNR Property Corp.. . . . . . . . . . . . . . . . . . . . . . . 304 6,574
--------
11,273
--------
RESEARCH, MANAGEMENT & RELATED SERVICES - 1.33%
CuraGen Corp.*. . . . . . . . . . . . . . . . . . . . . . . . . 180 11,633
Halliburton Co. . . . . . . . . . . . . . . . . . . . . . . . . 223 8,265
Jacobs Engineering Group, Inc.* . . . . . . . . . . . . . . . . 154 6,372
MAXIMUS, Inc.*. . . . . . . . . . . . . . . . . . . . . . . . . 104 2,554
Millennium Pharmaceuticals, Inc.* . . . . . . . . . . . . . . . 82 5,950
Moody's Corp. . . . . . . . . . . . . . . . . . . . . . . . . . 564 14,840
Dun & Bradstreet Corp.* . . . . . . . . . . . . . . . . . . . . 282 6,098
Paychex, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . 163 9,240
Pharmaceutical Product Development, Inc.* . . . . . . . . . . . 111 3,476
Quest Diagnostics, Inc.*. . . . . . . . . . . . . . . . . . . . 100 9,625
Quintiles Transnational Corp.*. . . . . . . . . . . . . . . . . 982 13,687
--------
91,740
--------
RESTAURANTS - 0.57%
Luby's Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . 384 2,256
McDonald's Corp.. . . . . . . . . . . . . . . . . . . . . . . . 644 19,964
Tricon Global Restaurants, Inc.*. . . . . . . . . . . . . . . . 565 16,950
--------
39,170
--------
RETAIL - APPAREL & ACCESSORY STORES - 0.37%
Gap, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . 325 8,389
Intimate Brands, Inc. . . . . . . . . . . . . . . . . . . . . . 219 5,229
Kohl's Corp.* . . . . . . . . . . . . . . . . . . . . . . . . . 128 6,936
Limited, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . 184 4,646
--------
25,200
--------
RETAIL - BUILDING MATERIALS & HARDWARE - 0.89%
Home Depot, Inc.. . . . . . . . . . . . . . . . . . . . . . . . 912 39,216
Lowe's Companies, Inc.. . . . . . . . . . . . . . . . . . . . . 157 7,173
Sherwin-Williams Co.. . . . . . . . . . . . . . . . . . . . . . 693 15,029
--------
61,418
--------
RETAIL - HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES - 0.12%
Best Buy Co., Inc.* . . . . . . . . . . . . . . . . . . . . . . 79 3,965
RadioShack Corp.. . . . . . . . . . . . . . . . . . . . . . . . 70 4,174
--------
8,139
--------
</TABLE>
The accompanying notes are an integral part of the financial statements.
17
<PAGE>
Investment Portfolio - October 31, 2000
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------- --------
<S> <C> <C>
RETAIL - MISCELLANEOUS - 0.61%
Amazon.com, Inc.* . . . . . . . . . . . . . . . . . . . . 140 $ 5,127
Costco Wholesale Corp.* . . . . . . . . . . . . . . . . . 208 7,618
CVS Corp. . . . . . . . . . . . . . . . . . . . . . . . . 163 8,629
Walgreen Co.. . . . . . . . . . . . . . . . . . . . . . . 457 20,851
--------
42,225
--------
RUBBER & MISCELLANEOUS PLASTIC PRODUCTS - 0.11%
Liqui-Box Corp. . . . . . . . . . . . . . . . . . . . . . 81 2,901
NIKE, Inc. - Class B. . . . . . . . . . . . . . . . . . . 110 4,393
--------
7,294
--------
SECURITIES & COMMODITY BROKER, DEALERS & SERVICES - 2.33%
Bear Stearns Companies, Inc.. . . . . . . . . . . . . . . 491 29,767
Charles Schwab Corporation. . . . . . . . . . . . . . . . 515 18,089
Goldman Sachs Group, Inc. . . . . . . . . . . . . . . . . 181 18,066
J.P. Morgan & Co., Inc. . . . . . . . . . . . . . . . . . 61 10,096
Lehman Brothers Holdings, Inc.. . . . . . . . . . . . . . 88 5,676
Morgan Stanley Dean Witter & Co.. . . . . . . . . . . . . 449 36,060
Merrill Lynch & Co., Inc. . . . . . . . . . . . . . . . . 300 21,000
Waddell & Reed Financial, Inc.. . . . . . . . . . . . . . 682 21,739
--------
160,493
--------
SERVICE PROVIDERS - HEALTH & MEDICAL - 1.22%
Covance, Inc.*. . . . . . . . . . . . . . . . . . . . . . 535 4,614
First Health Group Corp.* . . . . . . . . . . . . . . . . 457 17,823
Health Management Associates, Inc.* . . . . . . . . . . . 760 15,058
Human Genome Sciences, Inc.*. . . . . . . . . . . . . . . 310 27,401
Lincare Holdings, Inc.* . . . . . . . . . . . . . . . . . 454 19,097
--------
83,993
--------
STONE, CLAY, GLASS AND CONCRETE PRODUCTS - 0.58%
Corning, Inc. . . . . . . . . . . . . . . . . . . . . . . 357 27,311
Libbey, Inc.. . . . . . . . . . . . . . . . . . . . . . . 62 1,690
USG Corp. . . . . . . . . . . . . . . . . . . . . . . . . 660 11,261
--------
40,262
--------
TECHNICAL INSTRUMENTS & SUPPLIES - 4.20%
MISCELLANEOUS INSTRUMENTS - 1.39%
Agilent Technologies, Inc.*. . . . . . . . . . . . . . 317 14,681
Analogic Corp. . . . . . . . . . . . . . . . . . . . . 102 3,602
Beckman Coulter, Inc.. . . . . . . . . . . . . . . . . 213 14,923
Bio-Rad Laboratories, Inc.*. . . . . . . . . . . . . . 160 4,784
General Motors Corp. - Class H*. . . . . . . . . . . . 572 18,533
KLA-Tencor Corp.*. . . . . . . . . . . . . . . . . . . 97 3,280
Litton Industries, Inc.* . . . . . . . . . . . . . . . 438 22,749
Mine Safety Appliances Co. . . . . . . . . . . . . . . 79 1,659
</TABLE>
The accompanying notes are an integral part of the financial statements.
18
<PAGE>
Investment Portfolio - October 31, 2000
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------- --------
<S> <C> <C>
MISCELLANEOUS INSTRUMENTS (continued)
PE Corp.-PE Biosystems Group. . . . . . . . . . . . . . . 76 $ 8,892
Teradyne, Inc.* . . . . . . . . . . . . . . . . . . . . . 83 2,594
--------
95,697
--------
SURGICAL, MEDICAL & DENTAL INSTRUMENTS & SUPPLIES - 2.68%
Bausch & Lomb, Inc. . . . . . . . . . . . . . . . . . . . 195 7,520
Baxter International, Inc.. . . . . . . . . . . . . . . . 118 9,698
Becton, Dickinson & Co. . . . . . . . . . . . . . . . . . 455 15,243
Biomet, Inc.. . . . . . . . . . . . . . . . . . . . . . . 286 10,350
Boston Scientific Corp.*. . . . . . . . . . . . . . . . . 231 3,682
C.R. Bard, Inc. . . . . . . . . . . . . . . . . . . . . . 369 15,452
DENTSPLY International, Inc.. . . . . . . . . . . . . . . 387 13,424
Guidant Corp.*. . . . . . . . . . . . . . . . . . . . . . 122 6,458
Invacare Corp.. . . . . . . . . . . . . . . . . . . . . . 182 5,187
Medtronic, Inc. . . . . . . . . . . . . . . . . . . . . . 532 28,894
Mettler-Toledo International, Inc.* . . . . . . . . . . . 354 16,527
MiniMed, Inc.*. . . . . . . . . . . . . . . . . . . . . . 192 14,004
St. Jude Medical, Inc.* . . . . . . . . . . . . . . . . . 318 17,490
SonoSite, Inc.* . . . . . . . . . . . . . . . . . . . . . 147 1,874
Stryker Corp. . . . . . . . . . . . . . . . . . . . . . . 83 3,911
Techne Corp.* . . . . . . . . . . . . . . . . . . . . . . 136 15,334
--------
185,048
--------
MISCELLANEOUS - 0.13%
Eastman Kodak Co. . . . . . . . . . . . . . . . . . . . . 143 6,417
Xerox Corp. . . . . . . . . . . . . . . . . . . . . . . . 330 2,784
9,201
--------
289,946
--------
TRANSPORTATION BY AIR - 0.35%
AMR Corp.* . . . . . . . . . . . . . . . . . . . . . . . . . 378 12,380
FedEx Corp.* . . . . . . . . . . . . . . . . . . . . . . . . 128 5,998
Southwest Airlines Co. . . . . . . . . . . . . . . . . . . . 194 5,529
--------
23,907
--------
TRANSPORTATION BY WATER - 0.03%
Alexander & Baldwin, Inc.. . . . . . . . . . . . . . . . . . 93 2,319
--------
TRANSPORTATION SERVICES - 0.55%
GATX Corp. . . . . . . . . . . . . . . . . . . . . . . . . . 370 15,563
Sabre Holdings Corp. . . . . . . . . . . . . . . . . . . . . 678 22,671
--------
38,234
--------
</TABLE>
The accompanying notes are an integral part of the financial statements.
19
<PAGE>
Investment Portfolio - October 31, 2000
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
--------- --------
<S> <C> <C>
TRANSPORTATION EQUIPMENT - 2.40%
AIRCRAFT & PARTS - 1.07%
The Boeing Co.. . . . . . . . . . . . . . 365 $24,752
General Dynamics Corp.. . . . . . . . . . 82 5,868
B.F. Goodrich Co. . . . . . . . . . . . . 609 24,931
Honeywell International, Inc. . . . . . . 346 18,619
--------
74,170
--------
MOTOR VEHICLE PARTS & ACCESSORIES - 1.14%
CLARCOR, Inc. . . . . . . . . . . . . . . 271 5,183
Delco Remy International, Inc.* . . . . . 489 3,270
Delphi Automotive Systems Corp. . . . . . 239 3,749
Ford Motor Co.. . . . . . . . . . . . . . 863 22,546
General Motors Corp.. . . . . . . . . . . 272 16,898
Genuine Parts Co. . . . . . . . . . . . . 720 15,345
Harsco Corp.. . . . . . . . . . . . . . . 256 5,168
Superior Industries International, Inc. . 199 6,778
--------
78,937
--------
MISCELLANEOUS - 0.19%
Harley-Davidson, Inc. . . . . . . . . . . 121 5,831
Lockheed Martin Corp. . . . . . . . . . . 170 6,095
Trinity Industries, Inc.. . . . . . . . . 36 866
--------
12,792
--------
165,899
--------
WHOLESALE TRADE - DURABLE GOODS - 0.82%
Carlisle Companies, Inc. . . . . . . . . . . 311 12,945
W.W. Grainger, Inc.. . . . . . . . . . . . . 450 14,372
Lawson Products, Inc.. . . . . . . . . . . . 111 3,011
MCSi, Inc.*. . . . . . . . . . . . . . . . . 256 7,360
Sybron International Corp.*. . . . . . . . . 543 13,439
Sycamore Networks, Inc.* . . . . . . . . . . 88 5,566
--------
56,693
--------
WHOLESALE TRADE - NON-DURABLE GOODS - 0.67%
Cardinal Health, Inc.. . . . . . . . . . . . 130 12,317
Safeway, Inc.* . . . . . . . . . . . . . . . 214 11,703
SUPERVALU, Inc.. . . . . . . . . . . . . . . 892 13,714
SYSCO Corp.. . . . . . . . . . . . . . . . . 158 8,246
--------
45,980
--------
TOTAL COMMON STOCK
(Identified Cost $6,828,218) . . . . . . 6,826,504
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
20
<PAGE>
Investment Portfolio - October 31, 2000
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
---------- --------
<S> <C> <C>
SHORT-TERM INVESTMENTS - 0.99%
Dreyfus Treasury Cash Management Fund
(Identified Cost $68,008). . . . . 68,008 $68,008
--------
TOTAL INVESTMENTS - 99.87%
(Identified Cost $6,896,226). . . . . 6,894,512
OTHER ASSETS, LESS LIABILITIES - 0.13% 8,630
--------
NET ASSETS - 100%. . . . . . . . . $6,903,142
==========
</TABLE>
* Non-income producing security.
Federal Tax Information:
At October 31, 2000, the net unrealized appreciation based on identified cost
for federal income tax purposes of $6,898,148 was as follows:
Unrealized appreciation $ 748,590
Unrealized depreciation (744,954)
------------
UNREALIZED APPRECIATION - NET $ 3,636
=============
The accompanying notes are an integral part of the financial statements.
21
<PAGE>
Statement of Assets and Liabilities
<TABLE>
<CAPTION>
October 31, 2000
ASSETS:
<S> <C>
Investments, at value (identified cost $6,896,226)(Note 2) $6,894,512
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,938
Dividends receivable . . . . . . . . . . . . . . . . . . . 4,694
Interest receivable. . . . . . . . . . . . . . . . . . . . 404
Receivable from investment advisor (Note 3). . . . . . . . 32,313
-----------
TOTAL ASSETS . . . . . . . . . . . . . . . . . . . . . . . 6,934,861
-----------
LIABILITIES:
Accrued directors' fees (Note 3) . . . . . . . . . . . . . 7,024
Accrued fund accounting fees (Note 3). . . . . . . . . . . 3,112
Accrued distribution and service fees-Class C (Note 3) . . 14
Accrued distribution and service fees-Class E (Note 3) . . 5,926
Transfer agent fees payable (Note 3) . . . . . . . . . . . 1,527
Audit fee payable. . . . . . . . . . . . . . . . . . . . . 9,267
Payable for fund shares repurchased. . . . . . . . . . . . 992
Other payables and accrued expenses. . . . . . . . . . . . 3,857
-----------
TOTAL LIABILITIES. . . . . . . . . . . . . . . . . . . . . 31,719
-----------
TOTAL NET ASSETS . . . . . . . . . . . . . . . . . . . . . $6,903,142
===========
NET ASSETS CONSIST OF:
Capital stock. . . . . . . . . . . . . . . . . . . . . . . $ 6,889
Additional paid-in-capital . . . . . . . . . . . . . . . . 7,033,969
Undistributed net investment income. . . . . . . . . . . . 20,259
Accumulated net realized loss on investments . . . . . . . (156,261)
Net unrealized depreciation on investments . . . . . . . . (1,714)
-----------
TOTAL NET ASSETS . . . . . . . . . . . . . . . . . . . . . $6,903,142
===========
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE - CLASS A
($20,660/2,017 shares). . . . . . . . . . . . . . . . . $ 10.24
===========
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE - CLASS C
($8,337/859 shares) . . . . . . . . . . . . . . . . . . $ 9.71
===========
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE - CLASS E
($6,874,145/686,014 shares) . . . . . . . . . . . . . . $ 10.02
===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
22
<PAGE>
Statement of Operations
<TABLE>
<CAPTION>
FOR THE PERIOD ENDED OCTOBER 31, 2000+
INVESTMENT INCOME:
<S> <C>
Dividends . . . . . . . . . . . . . . . . . . . . . . $ 76,825
Interest. . . . . . . . . . . . . . . . . . . . . . . 12,315
----------
Total Investment Income . . . . . . . . . . . . . . . 89,140
----------
EXPENSES:
Management fees (Note 3). . . . . . . . . . . . . . . 31,809
Fund accounting fees (Note 3) . . . . . . . . . . . . 40,516
Directors' fees (Note 3). . . . . . . . . . . . . . . 7,024
Transfer agent fees (Note 3). . . . . . . . . . . . . 1,527
Distribution and service fees (Class C) (Note 3). . . 14
Distribution and service fees (Class E) (Note 3). . . 15,916
Custodian fees. . . . . . . . . . . . . . . . . . . . 11,853
Audit fee . . . . . . . . . . . . . . . . . . . . . . 9,267
Miscellaneous . . . . . . . . . . . . . . . . . . . . 6,672
----------
Total Expenses. . . . . . . . . . . . . . . . . . . . 124,598
Less Reduction of Expenses (Note 3) . . . . . . . . . (64,122)
----------
Net Expenses. . . . . . . . . . . . . . . . . . . . . 60,476
----------
NET INVESTMENT INCOME . . . . . . . . . . . . . . . . 28,664
----------
REALIZED AND UNREALIZED LOSS
ON INVESTMENTS:
Net realized loss on investments. . . . . . . . . . . (156,261)
Net change in unrealized depreciation on investments. (1,714)
----------
NET REALIZED AND UNREALIZED LOSS
ON INVESTMENTS . . . . . . . . . . . . . . . . . . (157,975)
----------
NET DECREASE IN NET ASSETS RESULTING
FROM OPERATIONS. . . . . . . . . . . . . . . . . . $(129,311)
==========
</TABLE>
+ Commencement of operations 11/10/99
The accompanying notes are an integral part of the financial statements.
23
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE
PERIOD
ENDED
10/31/00+
-----------
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
<S> <C>
Net investment income. . . . . . . . . . . . . . . . . $ 28,664
Net realized loss on investments . . . . . . . . . . . (156,261)
Net change in unrealized depreciation on investments . (1,714)
-----------
Net decrease from operations . . . . . . . . . . . . . (129,311)
-----------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 2):
From net investment income - Class E . . . . . . . . . (8,405)
-----------
CAPITAL STOCK ISSUED AND
REPURCHASED (NOTE 5):
Net increase from capital share transactions . . . . . 7,040,858
-----------
Net increase in net assets . . . . . . . . . . . . . . 6,903,142
NET ASSETS:
Beginning of period. . . . . . . . . . . . . . . . . . --
-----------
END OF PERIOD (including undistributed net investment
income of $20,259) . . . . . . . . . . . . . . . . $6,903,142
===========
</TABLE>
+ Commencement of operation 11/10/99
The accompanying notes are an integral part of the financial statements.
24
<PAGE>
Financial Highlights
<TABLE>
<CAPTION>
CLASS A CLASS C CLASS E
FOR THE FOR THE FOR THE
PERIOD 2/22/00+ PERIOD 8/7/00+ PERIOD 11/10/99+
TO 10/31/00 TO 10/31/00 TO 10/31/00
----------------- ---------------- ------------------
Per share data (for a share outstanding throughout
each period):
<S> <C> <C> <C>
NET ASSET VALUE - BEGINNING OF PERIOD. . . . . . . . $ 10.00 $ 10.00 $ 10.00
----------------- ---------------- ------------------
Income from investment operations:
Net investment income (loss). . . . . . . . . . . 0.03 (0.00) 0.05
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . . . . . 0.21 (0.29) (0.01)
----------------- ---------------- ------------------
Total from investment operations . . . . . . . . . . 0.24 (0.29) 0.04
----------------- ---------------- ------------------
Less distributions to shareholders:
From net investment income. . . . . . . . . . . . -- -- (0.02)
----------------- ---------------- ------------------
NET ASSET VALUE - END OF PERIOD. . . . . . . . . . . $ 10.24 $ 9.71 $ 10.02
================= ================ ==================
Total return 1 . . . . . . . . . . . . . . . . . . . 2.40% (2.90)% 0.37%
Ratios (to average net assets) / Supplemental Data:
Expenses*. . . . . . . . . . . . . . . . . . . . 0.70%2 1.45%2 0.95%2
Net investment income (loss) *. . . . . . . . . 0.57%2 (0.16)%2 0.45%2
Portfolio turnover . . . . . . . . . . . . . . . . . 88% 88% 88%
NET ASSETS - END OF PERIOD (000's omitted) . . . . . $ 21 $ 8 $ 6,874
================= ================ ==================
</TABLE>
* The investment advisor did not impose all or a portion of its management fee.
If these expenses had been incurred by the Series the net investment income per
share and the ratios would have been as follows:
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Net investment income (loss) . . ($0.04) ($0.04) ($0.06)
Ratios (to average net assets):
Expenses. . . . . . . . . . 2.04%2 3.08%2 1.95%2
Net investment income . . . . (0.77)%2 (1.79)%2 (0.55)%2
</TABLE>
+ Commencement of operations.
1 Represents aggregate total return for the period indicated.
2 Annualized.
The accompanying notes are an integral part of the financial statements.
25
<PAGE>
Notes to Financial Statements
1. ORGANIZATION
PureMarkSM Series (the "Series") is a no-load diversified series of Exeter Fund,
Inc. (the "Fund"). The Fund is organized in Maryland and is registered under
the Investment Company Act of 1940, as amended, as an open-end management
investment company.
The Series' investment objective is to provide long-term total return that is
consistent with the broad U.S. stock market, as represented by the Russell 3000R
Index through investments that meet the socially responsible criteria of the
Series.
The Series' is authorized to issue five classes of shares (Class A, B, C, D, and
E). Each class of shares is substantially the same, except that class-specific
distribution and shareholder servicing expenses are borne by the specific class
of shares to which they relate. Currently, Class A, Class C and Class E are
offered. Shareholders of the Series have equal voting rights on matters
affecting all shareholders of the Series. In addition, each class of shares of
the Series has exclusive voting rights on matters that relate solely to its
class and separate voting rights on matters in which the interests of one class
differ from the interest of any other class.
The total authorized capital stock of the Fund consists of 1.7 billion shares of
common stock each having a par value of $0.01. As of October 31, 2000, 1.4
billion shares have been designated in total among 28 series, of which 37.5
million have been designated as PureMarkSM Series Class A Common Stock, 5
million have been designated as PureMarkSM Series Class C Common Stock, and 2.5
million have been designated as PureMarkSM Series Class E Common Stock.
2. SIGNIFICANT ACCOUNTING POLICIES
SECURITY VALUATION
Portfolio securities, including domestic equities, foreign equities, options and
corporate bonds, listed on an exchange are valued at the latest quoted sales
price of the exchange on which the security is traded most extensively.
Securities not traded on valuation date or securities not listed on an exchange
are valued at the latest quoted bid price.
Securities for which representative valuations or prices are not available from
the Fund's pricing service are valued at fair value as determined in good faith
by the Advisor under procedures established by and under the general supervision
and responsibility of the Fund's Board of Directors.
Short-term investments that mature in sixty days or less are valued at amortized
cost, which approximates market value.
SECURITY TRANSACTIONS, INVESTMENT INCOME AND EXPENSES
Security transactions are accounted for on trade date. Dividend income is
recorded on the ex-dividend date. Interest income and expenses are recorded on
an accrual basis.
Most expenses of the Fund can be attributed to a specific series. Expenses
which cannot be directly attributed are apportioned among the Series in the Fund
in such a manner as deemed equitable by the Fund's Directors, taking into
consideration, among other things, the nature and type of expense.
Income, expenses (other than class specific expenses), and realized and
unrealized gains and losses are prorated among the classes based on the relative
net assets of each class. Class specific expenses are directly charged to that
class. Currently, class specific expenses are limited to expenses incurred
under the Distribution Plan.
26
<PAGE>
Notes to Financial Statements
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
SECURITY TRANSACTIONS, INVESTMENT INCOME AND EXPENSES (continued)
The Series uses the identified cost method for determining realized gain or loss
on investments for both financial statement and federal income tax reporting
purposes.
Through the Series' investment in Real Estate Investment Trusts, the Series may
receive return of capital (ROC) dividends. When ROC dividends are received,
cost of investments would be reduced by the amount of the dividend.
FEDERAL INCOME TAXES
The Series' policy is to comply with the provisions of the Internal Revenue Code
applicable to regulated investment companies. The Series is not subject to
federal income or excise tax to the extent that the Series distributes to
shareholders each year its taxable income, including any net realized gains on
investments, in accordance with requirements of the Internal Revenue Code.
Accordingly, no provision for federal income tax or excise tax has been made in
the financial statements.
At October 31, 2000, the Series, for federal income tax purposes, had a capital
loss carryforward of $154,339 that will expire on October 31, 2008.
DISTRIBUTIONS OF INCOME AND GAINS
Distributions to shareholders of net investment income are made annually, and
are declared separately for each class. Distributions of net realized gains are
distributed annually. An additional distribution may be necessary to avoid
taxation of the Series. Distributions are recorded on the ex-dividend date.
The timing and characterization of certain income and capital gains are
determined in accordance with federal income tax regulations which may differ
from generally accepted accounting principles. These differences are primarily
due to differing book and tax treatments in timing of the recognition of gains
or losses, including losses deferred due to wash sales. As a result, net
investment income (loss) and net investment gain (loss) on investment
transactions for a reporting period may differ from distributions to
shareholders during such period. As a result, the Series may periodically make
reclassifications among its capital accounts without impacting the Series' net
asset value. Any such reclassifications are not reflected in the financial
highlights.
OTHER
The preparation of the 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 revenues and expenses during the
reporting period. Actual results could differ from those estimates.
3. TRANSACTIONS WITH AFFILIATES
The Fund has an investment advisory agreement with Manning & Napier Advisors,
Inc., dba Exeter Asset Management (the "Advisor"), for which the Series pays the
Advisor a fee, computed daily and payable monthly, at an annual rate of 0.50% of
the Series' average daily net assets.
Under the Fund's Investment Advisory Agreement (the "Agreement"), personnel
of the Advisor provide the Series with advice and assistance in the choice of
investments and the execution of
27
<PAGE>
Notes to Financial Statements
3. TRANSACTIONS WITH AFFILIATES (continued)
securities transactions, and otherwise maintain the Series' organization. The
Advisor also provides the Fund with necessary office space and fund
administration services. The salaries of all officers of the Fund and of all
Directors who are "affiliated persons" of the Fund or of the Advisor, and all
personnel of the Fund or of the Advisor performing services relating to
research, statistical and investment activities are paid by the Advisor. The
"non-affiliated" Directors receive an annual stipend, which is allocated among
all the Series of the Fund. In addition, these Directors also receive a per
meeting fee for each Series of the Fund.
The Advisor has contractually agreed to waive its fee and, if necessary, pay
other expenses of the Series in order to maintain total expenses for the Series
at no more than 0.70% for Class A shares, 1.45% for Class C shares, and 0.95%
for Class E shares, of average daily net assets each year. Accordingly, the
Advisor did not impose its fees and assumed expenses amounting to $32,313 for
the period ended October 31, 2000, which is reflected as a reduction of expenses
on the Statement of Operations.
The Advisor also acts as the transfer, dividend paying and shareholder servicing
agent for the Fund. For these services, the Series pays a fee which is
calculated as a percentage of the average daily net assets at an annual rate of
0.024%.
Manning & Napier Investor Services, Inc., a registered broker-dealer affiliate
of the Advisor, acts as distributor of the Fund's shares. The Series compensates
the distributor for distributing and servicing the Series' Class C and Class E
shares pursuant to plans of distribution adopted under Rule 12b-1 of the
Investment Company Act of 1940, regardless of expenses actually incurred. The
distribution fees were accrued daily and payable quarterly, at an annual rate of
0.75% for Class C's average daily net assets and 0.25% of the Class E's average
daily net assets.
Effective April 2000 the Advisor became the Fund's accounting services agent.
For these services, the Fund will pay the Advisor a fee of 0.04% of each Series'
daily net assets calculated daily and payable monthly, with a minimum annual fee
of $48,000 per Series plus out-of-pocket expenses. In addition, the Fund will
pay the Advisor an additional annual fee of $10,000 for each additional class of
a Series. The Advisor has entered into an agreement with BISYS Fund Services
Ohio, Inc. ("BISYS") under which BISYS will serve as sub-accounting services
agent.
4. PURCHASES AND SALES OF SECURITIES
For the period ended October 31, 2000, purchases and sales of securities, other
than United States Government securities and short-term securities, were
$12,599,031 and $5,614,570, respectively. There were no purchases or sales of
United States Government securities.
5. CAPITAL STOCK TRANSACTIONS
Transactions in shares of PureMarkSM Series Class A Common Stock were:
<TABLE>
<CAPTION>
For the Period
2/22/00 (commencement of operations) to 10/31/00
------------------------------------------------
<S> <C> <C>
Shares Amount
-------------- -------
Sold . . . . . . . . . . . . . . . . . . . 2,017 $21,100
-------------- -------
Net change . . . . . . . . . . . . . . . . 2,017 $21,100
============== =======
</TABLE>
28
<PAGE>
Notes to Financial Statements
5. CAPITAL STOCK TRANSACTIONS (continued)
Transactions in shares of PureMarkSM Series Class C Common Stock were:
<TABLE>
<CAPTION>
For the Period
8/7/00 (commencement of operations) to 10/31/00
-----------------------------------------------
<S> <C> <C>
Shares Amount
-------------- ------
Sold. . . . . . . . . . . . . . . . . . . 859 $8,600
-------------- ------
Net change. . . . . . . . . . . . . . . . 859 $8,600
============== ======
</TABLE>
Transactions in shares of PureMarkSM Series Class E Common Stock were:
<TABLE>
<CAPTION>
For the Period
11/10/99 (commencement of operations) to 10/31/00
-------------------------------------------------
<S> <C> <C>
Shares Amount
-------------- ------------
Sold. . . . . . . . . . . . . . . . . . . . 780,755 $7,984,485
Reinvested. . . . . . . . . . . . . . . . . 850 8,405
Repurchased . . . . . . . . . . . . . . . . (95,591) (981,732)
--------------- -----------
Net change. . . . . . . . . . . . . . . . . 686,014 $7,011,158
=============== ===========
</TABLE>
6. FINANCIAL INSTRUMENTS
The Series may trade in financial instruments with off-balance sheet risk
in the normal course of its investing activities to assist in managing exposure
to various market risks. These financial instruments include written options
and futures contracts and may involve, to a varying degree, elements of risk in
excess of the amounts recognized for financial statement purposes. No such
investments were held by the Series on October 31, 2000.
29
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and Shareholders of Exeter Fund, Inc. - PureMarkSM
Series:
In our opinion, the accompanying statement of assets and liabilities, including
the investment portfolio, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of the Exeter Fund, Inc.: PureMarkSM
Series (the "Fund") at October 31, 2000, and the results of its operations, the
changes in its net assets and the financial highlights for the period from
November 10, 1999 (commencement of operations) to October 31, 2000, in
conformity with accounting principles generally accepted in the United States of
America. These financial statements and financial highlights (hereafter referred
to as "financial statements") are the responsibility of the Fund's management;
our responsibility is to express an opinion on these financial statements based
on our audit. We conducted our audit of these financial statements in
accordance with auditing standards generally accepted in the United States of
America, which require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audit, which included confirmation of securities at October 31, 2000 by
correspondence with the custodian, provides a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
December 15, 2000
30
<PAGE>
