================================================================================
LEXINGTON
================================================================================
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LEXINGTON
RAMIREZ
GLOBAL
INCOME
FUND
---------------------------------
o Quarterly dividends
o Capital appreciation potential
o Free telephone exchange
privilege
o No sales charge
---------------------------------
SEMI-ANNUAL REPORT
JUNE 30, 1997
The Lexington Group
of NO LOAD
Investment Companies
================================================================================
<PAGE>
DEAR SHAREHOLDERS:
- --------------------------------------------------------------------------------
Global bond returns were a mixed bag during the first half of 1997. Fixed
income securities denominated in U.S. dollars performed reasonably well as most
investment grade securities earned their coupon return. Emerging market debt --
Brady Bonds and the like -- enjoyed excellent returns as spreads between
non-investment grade bonds and U.S. Treasury obligations narrowed dramatically.
The unmanaged Lehman Brothers Emerging Markets Bond Index gained about 10.5%
during the first half of the year.
U.S. investors, however, fared poorly in non-dollar bonds. Overseas fixed
income markets are benefiting from slow economic growth and low inflation.
Foreign bond prices rose during the period but these gains plus coupon returns
were more than erased by currency depreciation versus the U.S. Dollar. Overall,
non-dollar global bond markets declined 4.1% in U.S. dollar terms during this
first six months of 1997.
With its accent on diversification and high current income, the Lexington
Ramirez Global Income Fund has performed better than most of its peers so far
this year. Its 2.1%* total return during the first half was good enough to place
it within the top quartile of all global fixed income mutual funds as measured
by Lipper Analytical Services Inc. Although the Fund's price declined by 24
cents a share in the period, this was more than offset by 47.5 cents a share of
dividend income.
The value of the U.S. Dollar seesawed up and down 10% versus the Japanese
Yen during the first two quarters of 1997. This, however, had little impact on
our Fund. The big problem was the persistent 13% decline in the value of the
German Mark. The Fund has about 18% of its assets invested in Eastern
Europe--Poland, Hungary, the Czech Republic and Slovakia. These currencies are
partially tied to the D-Mark. So, despite the high income returns on these
bonds, we lost ground as their currencies depreciated. We maintain a favorable
view of the profit potential of these markets given the steady progress of these
countries in curbing inflation and reforming their economies. The Fund will
remain overweighted in Eastern Europe during the second half.
We did make significant portfolio changes in other areas during the first
half of the year. Our holdings in Southeast Asia were eliminated because of
currency instability in the region. We reduced our holdings in Australia, Spain
and Portugal because yields converged with those in the U.S. Proceeds from these
sales were used to increase our holdings of emerging market dollar-denominated
debt and lower rated domestic corporate and mortgage bonds. These changes should
help insure a high dividend return for investors in the second half.
Sincerely,
/s/Maria Fiorini Ramirez /s/Denis P. Jamison /s/Robert M. DeMichele
- ------------------------ ------------------- ----------------------
Maria Fiorini Ramirez Denis P. Jamison Robert M. DeMichele
Portfolio Manager Portfolio Manager President
August, 1997 August, 1997 August, 1997
* 11.49%, 8.28% and 8.10% are the one, five and ten year average annual standard
total returns, respectively, for the period ended June 30, 1997. Prior to
December 31, 1994 the Fund operated under a different name and investment
objective. Investment return and principal value of an investment will
fluctuate so that an investor's shares, when redeemed, may be worth more or
less than at their original cost. Total return represents past performance and
is not predictive of future results.
1
<PAGE>
LEXINGTON RAMIREZ GLOBAL INCOME FUND
STATEMENT OF NET ASSETS
(INCLUDING THE PORTFOLIO OF INVESTMENTS)
June 30, 1997 (unaudited)
PRINCIPAL VALUE
AMOUNT OR SHARES SECURITY (NOTE 1)
- --------------------------------------------------------------
LONG-TERM DEBENTURES: 85.4%
GOVERNMENT OBLIGATIONS: 54.8%
ARGENTINA: 2.0%
$ 600,000 Republic of Argentina
5.50%, due 03/31/23 ........... $ 416,625
----------
AUSTRALIA: 3.2%
940,000* New South Wales Treasury
Corporation
6.50%, due 05/01/06 ........... 677,788
----------
BRAZIL: 6.5%
1,680,975 Government of Brazil "C"
4.50%, due 04/15/14 ........... 1,351,083
----------
COSTA RICA: 3.7%
900,000 Banco Costa Rica
6.25%, due 05/21/10 ........... 758,250
----------
DOMINICAN REPUBLIC: 4.8%
1,200,000 Central Bank of Dominican
Republic
6.375%, due 08/30/24 .......... 995,280
----------
ECUADOR: 1.8%
500,000 Government of Ecuador
6.4375%, due 02/28/25 ......... 368,750
----------
GREECE: 5.7%
310,000,000* Hellenic Republic
14.00%, due 10/23/03 .......... 1,175,191
----------
HUNGARY: 5.6%
200,000,000* Government of Hungary
21.00%, due 10/24/99 .......... 1,149,528
----------
JORDAN: 5.7%
1,750,000 Kingdom of Jordan
4.00%, due 12/23/23 ........... 1,168,125
----------
MEXICO: 1.9%
500,000 United Mexican States**
6.25%, due 12/31/19 ........... 387,031
500,000 United Mexican States
(Rights)** --
----------
387,031
----------
NEW ZEALAND: 3.8%
1,150,000* New Zealand Government
6.50%, due 02/15/00 ............ $ 776,310
----------
POLAND: 3.7%
2,680,000* Government of Poland
16.00%, due 10/12/98 ............ 760,880
----------
SOUTH AFRICA: 2.9%
1,100,000* Electricity Supply
Commission
11.00%, due 06/01/08 .......... 195,605
2,000,000* Republic of South Africa
12.00%, due 02/28/05 ............. 393,162
----------
588,767
----------
SPAIN: 1.2%
30,000,000* Bonos Y Oblig Del Estado
10.15%, due 01/31/06 .......... 255,908
----------
VENEZUELA: 2.3%
500,000 Republic of Venezuela
6.50%, due 12/18/07 ........... 463,925
----------
TOTAL GOVERNMENT
OBLIGATIONS
(Cost $11,095,132) ............ 11,293,441
----------
CORPORATE BONDS: 30.6%
CANADA: 10.0%
1,000,000 CHC Helicopter
11.50%, due 07/15/02 .......... 1,045,000
500,000* Rogers Communication, Inc.
10.50%, due 02/14/06 .......... 393,278
700,000* Stelco, Inc.
10.40%, due 11/30/09 .......... 625,767
----------
2,064,045
----------
CZECH REPUBLIC: 3.9%
12,500,000* CEZ, A.S.
11.30%, due 06/06/05 .......... 366,489
14,800,000* Skofin S.R.O., A.S.
11.625%, due 02/09/98 ......... 439,632
----------
806,121
----------
The Notes to Financial Statements are an integral part of this statement.
2
<PAGE>
LEXINGTON RAMIREZ GLOBAL INCOME FUND
STATEMENT OF NET ASSETS
(INCLUDING THE PORTFOLIO OF INVESTMENTS)
June 30, 1997 (unaudited) (continued)
PRINCIPAL VALUE
AMOUNT SECURITY (NOTE 1)
- --------------------------------------------------------------------------------
DENMARK: 9.3%
$ 5,468,499* Nykredit
7.00%, due 10/01/26 .................. $ 808,062
5,467,999* Realkredit Danmark
7.00%, due 10/01/26 .................. 808,813
2,000,000* Unikredit 7.00%,
due 10/01/26 ......................... 295,443
----------
1,912,318
----------
UNITED STATES: 7.4%
700,000 Archibold Candy**
10.25%, due 7/01/04 .................. 713,562
939,344 NSCOR 1997-6 Series B-4
7.50%, due 4/01/27 ................... 642,460
200,327 DLJ Mortgage Acceptance**
7.25%, due 9/25/11 ................... 159,322
----------
1,515,344
----------
TOTAL CORPORATE BONDS
(Cost $6,365,021) .................... 6,297,828
----------
TOTAL LONG-TERM DEBENTURES
(Cost $17,460,153) ................... 17,591,269
----------
SHORT-TERM INVESTMENTS: 9.5%
LEBANON: 2.6%
882,470,000* Lebanon Government
Treasury Bills
0%, due 2/19/98 ................... 525,147
----------
MEXICO: 2.8%
4,700,000* Cetes 0%, due 7/24/97 ................. 583,436
----------
SLOVAKIA: 3.6%
25,000,000* European Bank for Research &
Development 12.50%,
due 08/19/97 ........................ 744,072
----------
UNITED STATES: 0.5%
$ 100,000 U.S. Treasury Bills
5.09%, due 12/11/97 ................. 97,658
----------
TOTAL SHORT-TERM INVESTMENTS
(cost $2,027,641) ................... 1,950,313
----------
CALL OPTIONS WRITTEN: (0.1%)
1,680,975 Government of Brazil "C" strike price
$80.50 expires 7/10/97
(premium $16,916) (Note 8) ......... (14,371)
500,000 United Mexican States strike price
$78.437 expires 7/24/97
(premium $4,250) (Note 8) (2,306)
---------
TOTAL CALL OPTIONS WRITTEN ............ (16,677)
---------
TOTAL INVESTMENTS: 94.8% .............. 19,524,905
(Cost $19,487,794+) Note 1
Other assets in excess of
liabilities: 5.2% ................... 1,071,240
----------
TOTAL NET ASSETS: 100.0%
(equivalent to $10.98 per share on
1,875,986 shares outstanding) ....... $20,596,145
===========
* Principal amount represents local currency.
** Restricted Security (Note 9).
+ Aggregate cost for Federal income tax purposes is identical.
The Notes to Financial Statements are an integral part of this statement.
3
<PAGE>
LEXINGTON RAMIREZ GLOBAL INCOME FUND
STATEMENT OF ASSETS AND LIABILITIES
June 30,1997 (unaudited)
ASSETS
Investments, at value (cost $19,487,794) (Note 1) ................ $19,524,905
Cash ............................................................. 366,565
Receivable for investment securities sold ........................ 716,746
Receivable for shares sold ....................................... 252,254
Dividends and interest receivable ................................ 581,261
-----------
Total Assets .......................................... 21,441,731
-----------
LIABILITIES
Due to Lexington Management Corporation (Note 2) ................. 2,359
Payable for investment securities purchased ...................... 700,000
Payable for shares redeemed ...................................... 53,560
Distributions payable ............................................ 61,382
Accrued expenses ................................................. 26,783
Unrealized loss on open forward contracts (Note 7) ............... 1,502
-----------
Total Liabilities ..................................... 845,586
-----------
NET ASSETS (equivalent to $10.98 per share on 1,875,986
shares outstanding) (Note 4) ............................... $20,596,145
===========
NET ASSETS consist of:
Additional paid-in capital (Note 1) .............................. $20,246,330
Undistributed net investment income (Note 1) ..................... 69,746
Accumulated net realized gain on investments and foreign
currency transactions (Note 1) ............................. 245,344
Unrealized appreciation on investments and foreign
currency transactions ....................................... 34,725
-----------
$20,596,145
===========
The Notes to Financial Statements are an integral part of this statement.
4
<PAGE>
LEXINGTON RAMIREZ GLOBAL INCOME FUND
STATEMENT OF OPERATIONS
Six months ended June 30, 1997 (unaudited)
<TABLE>
<CAPTION>
INVESTMENT INCOME
<S> <C> <C>
Interest ...................................................................... $1,153,027
Less: foreign tax expense ..................................................... 7,795
------------
Total investment income ................................................ $1,145,232
EXPENSES
Investment advisory fee (Note 2) ........................................... 100,737
Printing and mailing expenses .............................................. 26,643
Distribution expense (Note 3) .............................................. 25,181
Transfer agent and shareholder servicing expense (Note 2) .................. 15,323
Custodian expense .......................................................... 14,829
Registration fees .......................................................... 11,176
Professional fees .......................................................... 9,385
Accounting expenses (Note 2) ............................................... 8,330
Directors' fees and expenses ............................................... 7,989
Computer processing fees ................................................... 3,164
Other expenses ............................................................. 3,746
------------
Total expenses ......................................................... 226,503
Less: expenses recovered under contract with
investment adviser (Note 2) ........................................ 75,404 151,099
------------ ------------
Net investment income .................................................. 994,133
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 5)
Net realized gain (Ioss) on:
Investments ............................................................ 238,982
Foreign currency transactions .......................................... (185,655)
------------
Net realized gain .................................................. 53,327
Net change iappreciationd (depreciation) on:
Investments ............................................................ (646,889)
Foreign currency translations of other assets and liabilities .......... (36,462)
------------
Net change in unrealized appreciation ................................ (683,351)
------------
Net realized and unrealized loss ................................... (630,024)
------------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS .............................. $364,109
============
</TABLE>
The Notes to Financial Statements are an integral part of this statement.
5
<PAGE>
LEXINGTON RAMIREZ GLOBAL INCOME FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six months Year
ended ended
June 30, 1997 December 31,
(unaudited) 1996
------------ ------------
<S> <C> <C>
Net investment income ............................................. $994,133 $1,816,665
Net realized gain on investments and foreign currency transactions 53,327 193,850
Net change in unrealized appreciation (depreciation) of investments
and foreign currency translations .............................. (683,351) 222,285
------------ ------------
Increase in net assets resulting from operations ............. 364,109 2,232,800
Distributions to shareholders from net investment income .......... (838,076) (1,529,914)
Distributions to shareholders from net realized gains from
security transactions ........................................ -- (92,247)
Increase (decrease) in net assets from
capital share transactions (Note 4) ............................ (8,039,708) 16,244,449
------------ ------------
Net increase (decrease) in net assets ........................ (8,513,675) 16,855,088
NET ASSETS:
Beginning of period ............................................ 29,109,820 12,254,732
------------ ------------
End of period (including undistributed net investment income
of $69,746 and distributions in excess of net investment
income of $86,311, respectively) ............................. $20,596,145 $29,109,820
============ ============
</TABLE>
The Notes to Financial Statements are an integral part of these statements.
6
<PAGE>
LEXINGTON RAMIREZ GLOBAL INCOME FUND
NOTES TO FINANCIAL STATEMENTS
June 30, 1997 (unaudited) and December 31, 1996
1. SIGNIFICANT ACCOUNTING POLICIES
Lexington Ramirez Global Income Fund, (the "Fund") is an open-end
non-diversified management investment company registered under the Investment
Company Act of 1940, as amended. The Fund's investment objective is to seek high
current income. Capital appreciation is a secondary objective. The following is
a summary of significant accounting policies followed by the Fund in the
preparation of its financial statements:
INVESTMENTS Security transactions are accounted for on a trade date basis.
Realized gains and losses from investment transactions are reported on the
identified cost basis. Long-term debt obligations held by the Fund are valued at
the mean of representative quoted bid and asked prices for such securities or,
if such prices are not available, at prices for securities of comparable
maturity, quality and type; however, when LMC deems it appropriate, prices
obtained for the day of valuation from a bond pricing service will be used.
Short-term debt investments are amortized to maturity based on their cost,
adjusted for foreign exchange translation and market fluctuations. Equity
securities are valued at the last sale price on the exchange or in the principal
OTC market in which such securities are traded, as of the close of business on
the day the securities are being valued, lacking any sales, at the last
available bid price. Securities for which market quotations are not readily
available and other assets are valued at fair value as determined by management
in good faith and approved by the Board of Directors. All investments quoted in
foreign currencies are valued in U.S. dollars on the basis of the foreign
currency exchange rates prevailing at the close of business. Dividend income and
distributions to shareholders are recorded on the ex-dividend date. Interest
income, adjusted for amortization of premiums and accretion of discounts, is
accrued as earned.
FOREIGN CURRENCY TRANSACTIONS Foreign currencies (and receivables and
payables denominated in foreign currencies) are translated into U.S. dollar
amounts at current exchange rates. Translation gains or losses resulting from
changes in exchange rates and realized gains and losses on the settlement of
foreign currency transactions are reported in the statement of operations. In
addition, the Fund may enter into forward foreign exchange contracts in order to
hedge against foreign currency risk in the purchase or sale of securities
denominated in foreign currency. The Fund may also enter into such contracts to
hedge against changes in foreign currency exchange rates on portfolio positions.
These contracts are marked to market daily, by recognizing the difference
between the contract exchange rate and the current market rate as unrealized
gains or losses. Realized gains or losses are recognized when contracts are
closed and are reported in the statement of operations.
FEDERAL INCOME TAXES It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to "regulated investment
companies" and to distribute all of its taxable income to its shareholders.
Therefore, no provision for Federal income taxes is required.
DISTRIBUTIONS Dividends from net investment income are normally declared
and paid quarterly and dividends from net realized capital gains are normally
declared and paid annually. However, the Fund may make distributions on a more
frequent basis to comply with the distribution requirements of the Internal
Revenue Code. The character of income and gains to be distributed are determined
in accordance with
7
<PAGE>
LEXINGTON RAMIREZ GLOBAL INCOME FUND
NOTES TO FINANCIAL STATEMENTS
June 30, 1997 (unaudited) and December 31, 1996 (continued)
1. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
income tax regulations which may differ from generally accepted accounting
principles. At December 31, 1996, reclassifications were made to the Fund's
capital accounts to reflect permanent book/tax differences and income and gains
available for distributions under income tax regulations. Net investment income,
net realized gains and net assets were not affected by this change.
USE OF ESTIMATES The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts of
increases and decreases in net assets from operations during the reporting
period. Actual results could differ from those estimates.
2. INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATE
The Fund pays an investment advisory fee to Lexington Management Corporation
("LMC") at an annual rate of 1.00% of the Fund's average daily net assets. In
connection with providing investment advisory services, LMC has entered into a
sub-advisory contract with MFR Advisors Inc. ("MFR") under which MFR Provides
the Fund with investment management services. Pursuant to the terms of the
sub-advisory contract between LMC and MFR, LMC pays MFR a monthly sub-advisory
fee at the annual rate of .50% of the fund's average daily net assets. For 1997,
LMC has agreed to voluntarily limit the total expenses of the Fund (excluding
interest, taxes, brokerage commissions and extraordinary expenses but including
management fee and operating expenses) to an annual rate of 1.50% of the Fund's
average daily net assets. The investment advisory fee and expense reimbursement
are set forth in the statement of operations.
The Fund also reimbursed LMC for certain expenses, including accounting and
shareholder servicing costs of $17,654, which are incurred by the Fund, but paid
by LMC.
3. DISTRIBUTION PLAN
The Fund has adopted a Distribution Plan (the "Plan") which allows payments to
finance activities associated with the distribution of the Fund's shares. The
Plan provides that the Fund may pay distribution fees on a reimbursement basis,
including payments to Lexington Funds Distributor, Inc. ("LFD"), the Fund's
distributor, in amounts not exceeding 0.25% per annum of the Fund's average
daily net assets. Total distribution expenses for the six months ended June 30,
1997 were $25,181 and are set forth in the statement of operations. 4. CAPITAL
STOCK Transactions in capital stock were as follows:
<TABLE>
<CAPTION>
Six months ended Year ended
June 30,1997 December 31, 1996
-------------------------- -------------------------
Shares Amount Shares Amount
----- ------ ------ ------
<S> <C> <C> <C> <C>
Shares sold .............................. 680,141 $7,577,363 2,090,482 $23,291,607
Shares issued on reinvestment of dividends 62,956 690,008 119,710 1,308,206
---------- ----------- -------- ----------
743,097 8,267,371 2,210,192 24,599,813
Shares redeemed .......................... (1,461,555) (16,307,079) (755,281) (8,355,364)
---------- ----------- -------- ----------
Net increase (decrease) .................. (718,458) $(8,039,708) 1,454,911 $16,244,449
========== =========== ========= ===========
</TABLE>
8
<PAGE>
LEXINGTON RAMIREZ GLOBAL INCOME FUND
NOTES TO FINANCIAL STATEMENTS
June 30, 1997 (unaudited) and December 31, 1996 (continued)
5. PURCHASES AND SALES OF INVESTMENT SECURITIES
The cost of purchases and proceeds from sales of securities for the six months
ended June 30, 1997, excluding short-term securities, were $9,776,419 and
$14,176,494, respectively.
At June 30, 1997, the aggregate gross unrealized appreciation for all securities
in which there is an excess of value over tax cost amounted to $1,053,905 and
aggregate gross unrealized depreciation for all securities in which there is an
excess of tax cost over value amounted to $1,019,180.
6. INVESTMENT AND CONCENTRATION RISKS
The Fund's investments in foreign securities may involve risks not present in
domestic investments. Since foreign securities may be denominated in a foreign
currency and involve settlement and pay interest or dividends in foreign
currencies, changes in the relationship of these foreign currencies to the U.S.
dollar can significantly affect the value of the investments and earnings of the
Fund. Foreign investments may also subject the Fund to foreign government
exchange restrictions, expropriation, taxation or other political, social or
economic developments, all of which could affect the market and/or credit risk
of the investments.
In addition to the risks described above, risks may arise from forward foreign
exchange contracts as the result of the potential inability of counterparties to
meet the terms of their contracts.
7. FORWARD FOREIGN EXCHANGE CONTRACTS
At June 30, 1997, the Fund was committed to sell foreign currencies under the
following forward foreign exchange contracts:
<TABLE>
<CAPTION>
Contract
Amount Unrealized
Settlement (Local Contract Current Gain (Loss) at
Security Date Currency) Rate Rate June 30, 1997
- ------- ------- ------ ------- ------ ------------
<S> <C> <C> <C> <C> <C>
Australian Dollar ..... 7/31/97 900,000 0.7513 0.7543 $(2,664)
Canadian Dollar ....... 7/09/97 1,300,000 1.3780 1.3797 1,162
-------
$(1,502)
=======
</TABLE>
8. OPTION CONTRACTS
When the Fund writes a call option, an amount equal to the premium received by
the fund is recorded as a liability, the value of which is marked-to-market
daily. When a written option expires, the Fund realizes a gain equal to the
amount of the premium received. When the Fund enters into a closing purchase
transaction, the Fund realizes a gain (or loss if the cost of the closing
purchase transaction exceeds the premium received when the option was sold)
without regard to any unrealized gain or loss on the underlying security, and
the liability related to such option is eliminated. When a written call option
is exercised the cost of the security sold will be decreased by the premium
originally received. The risk in writing a covered call option is that the Fund
gives up the opportunity to participate in any increase in the price of the
underlying security beyond the exercise price.
9
<PAGE>
LEXINGTON RAMIREZ GLOBAL INCOME FUND
NOTES TO FINANCIAL STATEMENTS
June 30,1997 (unaudited) and December 31, 1996 (continued)
8. OPTION CONTRACTS (CONTINUED)
The following written call option transactions occurred during the period ended
June 30, 1997:
Number of
Premiums Contracts
-------- --------
Options written, outstanding at December 31, 1996 .... $ 5,530 1
Options written during the period ended
June 30, 1997 ..................................... 148,456 9
Options exercised .................................... (52,438) (3)
Options expired ...................................... (80,382) (5)
--------- --
Options written, outstanding at June 30, 1997 ........ $ 21,166 2
========= ==
9. RESTRICTED SECURITIES
The following securities were purchased under Rule 144A of the Securities Act of
1933 and, unless registered under the Act or exempted from registration, may be
sold only to qualified institutional investors.
<TABLE>
<CAPTION>
Shares or
Acquisition Principal Market % of Net
Security Date Amount Average Cost Value Assets
- -------- -------- ------- ----------- -------- ------
<S> <C> <C> <C> <C> <C>
Archibold Candy ....................... 6/27/97 700,000 $100.00 $ 713,562 3.46%
DLJ Mortgage Acceptance ............... 10/25/96 200,327 73.87 159,322 0.77
United Mexican States ................. 6/24/97 500,000 78.46 387,031 1.89
United Mexican States (Rights) ........ 6/24/97 500,000 0.00 -- 0.00
--------- ----
$1,259,915 6.12%
========= ====
</TABLE>
Pursuant to guidelines adopted by the Fund's Board of Directors, these
unregistered securities have been deemed to be illiquid. The Fund currently
limits investment in illiquid securities to 15% of the Fund's net assets, at
market value, at time of purchase.
10
<PAGE>
LEXINGTON RAMIREZ GLOBAL INCOME FUND
FINANCIAL HIGHLIGHTS
Selected per share data for a share outstanding throughout the period:
<TABLE>
<CAPTION>
Six months
ended
June 30, Year ended December 31,
1997 ---------------------------------------------
(unaudited) 1996 1995 1994 1993
----------- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ............................ $ 11.22 $ 10.75 $ 9.80 $ 10.95 $ 10.39
---------- --------- ---------- --------- ---------
Income (loss) from investment operations:
Net investment income ......................................... 0.55 1.01 0.96 0.46 0.53
Net realized and unrealized gain (loss) from
investments and foreign currency transactions ............... (0.31) 0.36 0.95 (1.16) 0.58
---------- --------- ---------- --------- ---------
Total income (loss) from investment operations .................. 0.24 1.37 1.91 (0.70) 1.11
---------- --------- ---------- --------- ---------
Less distributions:
Distributions from net investment income ...................... (0.48) (0.86) (0.96) (0.45) (0.55)
Distributions from net realized gains ......................... -- (0.04) -- -- --
---------- --------- ---------- --------- ---------
Total distributions ............................................. (0.48) (0.90) (0.96) (0.45) (0.55)
---------- --------- ---------- --------- ---------
Net asset value, end of period .................................. $ 10.98 $ 11.22 $ 10.75 $ 9.80 $ 10.95
---------- --------- ---------- --------- ---------
Total return .................................................... 4.38%* 13.33% 20.10% (6.52%) 10.90%
Ratio to average net assets:
Expenses, before reimbursement or waiver ...................... 2.25%* 2.33% 3.07% 1.80% 1.44%
Expenses, net of reimbursement or waiver ...................... 1.50%* 1.50% 2.75% 1.50% 1.44%
Net investment income,
before reimbursement or waiver .............................. 9.12%* 9.49% 9.48% 4.18% 4.83%
Net investment income ......................................... 9.87%* 10.32% 9.80% 4.48% 4.83%
Portfolio turnover ............................................ 114.71%* 71.83% 164.72% 10.20% 31.06%
Net assets, end of period (000's omitted) ....................... $ 20,596 $ 29,110 $ 12,255 $ 10,351 $ 14,576
*Annualized
</TABLE>
11
<PAGE>
LEXINGTON
RAMIREZ GLOBAL INCOME FUND
INVESTMENT ADVISER
- ----------------------------------------------
LEXINGTON MANAGEMENT CORPORATION
P.O. Box 1515
Park 80 West Plaza Two
Saddle Brook, New Jersey 07663
SUB-ADVISER
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MFR ADVISORS, INC.
Liberty Plaza
46th Floor
200 Liberty Street
New York, New York 10006
DISTRIBUTOR
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LEXINGTON FUNDS DISTRIBUTOR, INC.
P.O. Box 1515
Park 80 West Plaza Two
Saddle Brook, New Jersey 07663
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ALL SHAREHOLDER REQUESTS FOR SERVICES OF
ANY KIND SHOULD BE SENT TO:
TRANSFER AGENT
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STATE STREET BANK AND
TRUST COMPANY
c/o National Financial Data Services
1004 Baltimore
Kansas City, Missouri 64105
OR CALL TOLL FREE:
SERVICE AND SALES: 1-800-526-0056
24 HOUR ACCOUNT INFORMATION:
1-800-526-0052
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(800) 526-0052
"LEXLINE"
24 hour toll-free telephone access to your
Lexington Fund account
Price/Yield o Account Balances o Exchanges o
Last Transactions o Total Return o Duplicate Statements
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This report has been prepared for the information of the shareholders of
Lexington Ramirez Global Income Fund and is authorized for distribution to the
public only if it is accompanied or preceded by a currently effective prospectus
which sets forth expenses and other material information.
