Securities Act File No. 033-26116
LEXINGTON NATURAL RESOURCES TRUST
Supplement dated July 26, 2000
to the Prospectus dated May 1, 2000
On the front cover page of the Prospectus, the address and telephone number
of the Lexington Natural Resources Trust (the "Fund") are hereby deleted and
replaced with: 40 North Central Avenue, Suite 1200, Phoenix, Arizona 85004,
Telephone: 1-800-992-0180.
On page 5 of the Prospectus under the section "INVESTMENT ADVISER," the
disclosure is hereby deleted and replaced with the following:
INVESTMENT ADVISER
Pilgrim Investments, Inc. ("Pilgrim" or "Pilgrim Investments") serves as
the investment adviser to the Fund. Pilgrim has overall responsibility for
the management of the Fund. Pilgrim provides or oversees all investment
advisory and portfolio management services for the Fund, and assists in
managing and supervising all aspects of the general day-to-day business
activities and operations of the Fund, including custodial, transfer
agency, dividend disbursing, accounting, auditing, compliance and related
services.
Organized in December 1994, Pilgrim is registered as an investment adviser.
Pilgrim is an indirect wholly-owned subsidiary of ReliaStar Financial Corp.
("ReliaStar") (NYSE: RLR). Through its subsidiaries, ReliaStar offers
individuals and institutions life insurance and annuities, employee
benefits, products and services, life and health reinsurance, retirement
plans, mutual funds, bank products, and personal finance education.
Prior to July 26, 2000, Lexington Management Corporation ("Lexington")
served as investment adviser to the Fund. On July 26, 2000, ReliaStar
acquired Lexington Global Asset Managers, Inc., the parent company of
Lexington, and Pilgrim Investments was approved as adviser to the funds
formerly advised by Lexington.
As of June 30, 2000, Pilgrim managed over $16.8 billion in assets.
Pilgrim's principal address is 40 North Central Avenue, Suite 1200,
Phoenix, Arizona 85004.
The Investment Adviser has entered into a sub-advisory agreement with
Market Systems Research Advisors, Inc., 80 Maiden Lane, New York, New York
10038, a registered investment adviser, under which the Sub-Adviser will
provide the Fund with certain investment management and administrative
services.
Pilgrim is paid an investment advisory fee at an annual rate of 1.00% of
the average daily net assets of the Fund. This fee is computed on the basis
of the Fund's average daily net assets and is payable on the last business
day of each month.
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On page 5 of the Prospectus under the section "PORTFOLIO MANAGER," the
disclosure is hereby deleted and replaced with the following:
PORTFOLIO MANAGER
The Fund is managed by an investment management team. Frank A. Peluso and
Robert M. DeMichele are the lead managers.
Frank A. Peluso. Mr. Peluso has 37 years investment experience. Mr. Peluso
is President and Chief Executive Officer of Market Systems Research
Advisors, Inc. ("MSR"), the sub-adviser to the Fund. Mr. Peluso utilizes a
proprietary analytical system to identify securities with performance
potential which he believes to be exceptional. In addition, Mr. Peluso's
proprietary data is used by professional money managers, insurance
companies, brokerage firms, banks, mutual fund companies and pension funds.
In 1976, he established Marketiming, Inc. (currently Market Systems
Research, Inc., a fully-owned subsidiary of MSR.) Mr. Peluso graduated from
Princeton University and completed a year of post-graduate study at
Columbia University, and two years of post-graduate study at Princeton
University with a Fellowship in Mathematics.
Robert M. DeMichele. Mr. DeMichele is Senior Vice President of Pilgrim
Investments and holds a similar position with Lexington. He is also
President and Chief Executive Officer of Lexington Distributors, Inc. He
served as Chairman and Chief Executive Officer of Lexington prior to the
acquisition of that firm's parent company. Prior to joining Lexington in
1981, Mr. DeMichele was a Vice President at A.G. Becker, Inc. the
securities division of Warburg, Paribus, Becker, and international
investment banking firm. From 1973 to 1981, Mr. DeMichele held several
positions, the most recent managing A.G. Becker's Funds Evaluation and
Consulting Group for both the East and West coasts. Mr. DeMichele is a
graduate of Union College with a B.A. Degree in Economics and an M.B.A. in
Finance from Cornell University.
On page 6, the last sentence under the section "SHAREHOLDER SERVICING
AGREEMENTS" is hereby deleted and replaced with the following:
Pilgrim, at no additional cost to the Fund, may pay to Shareholder
Servicing Agents additional amounts from its past profits. A Shareholder
Servicing Agent may, from time to time, choose not to receive all of the
fees payable to it.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
