<PAGE> PAGE 1
000 B000000 08/31/95
000 C000000 0000877698
000 D000000 N
000 E000000 F
000 F000000 Y
000 G000000 Y
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000 I000000 3.0.a
000 J000000 A
001 A000000 FFB LEXICON FUNDS
001 B000000 811-6368
001 C000000 8008338974
002 A000000 2 OLIVER STREET
002 B000000 BOSTON
002 C000000 MA
002 D010000 02109
003 000000 N
004 000000 N
005 000000 N
006 000000 N
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007 C010400 4
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022 A000001 UBS SECURITIES
022 B000001 13-2932996
022 C000001 2786800
022 D000001 2034
022 A000002 PRUDENTIAL-BACHE
022 B000002 22-2347336
022 C000002 2005178
022 D000002 0
022 A000003 J.P. MORGAN EQUITIES
022 B000003 13-3224106
022 C000003 405137
022 D000003 0
022 A000004 KIDDER PEABODY
022 B000004 23-0972337
022 C000004 351478
022 D000004 0
022 A000005 LEHMAN BROTHERS
022 B000005 13-2927667
022 C000005 327392
<PAGE> PAGE 2
022 D000005 0
022 A000006 GOLDMAN SACHS
022 B000006 13-5108880
022 C000006 141809
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022 A000007 MORGAN STANLEY
022 B000007 13-2655998
022 C000007 51039
022 D000007 0
022 A000008 MERRILL LYNCH
022 B000008 13-5674085
022 C000008 46380
022 D000008 0
022 A000009 CS FIRST BOSTON
022 B000009 13-5659485
022 C000009 35717
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022 A000010 CANADIAN IMPERIAL BANK OF COMMERCE
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023 C000000 6296845
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SIGNATURE JEFFREY COHEN
TITLE CONTROLLER
To SEI Financial Management Corporation:
We have examined the accompanying Exhibit entitled, "SEI
Financial Management Methodology for Controlling Multi-Class Funds."
This Exhibit, which is the responsibility of the management of
SEI Financial Management Corporation, sets forth the methodology
and procedures for calculating net asset value, expense allocations
and dividend distributions between the classes of shares. Our
examination included procedures to obtain reasonable assurance
about whether (1) the accompanying Exhibit presents fairly, in all
material respects, the aspects of SEI Financial Management
Corporation's methodology and procedures for calculating net
asset value, expense allocations and dividend distributions between
classes of shares, (2) the control structure methodology and procedures
included in the Exhibit were suitably designed to achieve the control
objectives specified in the Exhibit, if the methodology and procedures
were complied with satisfactorily, and (3) such methodology and
procedures had been placed in operation as of August 31, 1995. The
control objectives were specified by SEI Financial Management
Corporation. Our examination was performed in accordance with
standards established by the American Institute of Certified Public
Accountants and included those procedures we considered necessary
in the circumstances to obtain a reasonable basis for rendering our
opinion.
We did not perform procedures to determine the operating effectiveness
of the methodology and procedures for any period. Accordingly,
we express no opinion on the operating effectiveness of any aspects
of SEI Financial Management Corporation's methodology and
procedures, individually or in the aggregate.
In our opinion, the accompanying Exhibit of methodology and
procedures presents fairly, in all material respects, the relevant
aspects of SEI Financial Management Corporation's methodology
and procedures for calculating net asset value, expense allocations
and dividend distributions between the classes of shares that
had been placed in operation as of August 31, 1995. Also, in our
opinion, the methodology and procedures, as described, are suitably
designed to provide reasonable assurance that the specified control
objectives would be achieved if the described methodology and
procedures were complied with satisfactorily.
The description of methodology and procedures at SEI Financial
Management Corporation is as of August 31, 1995 and any projection
of such information to the future is subject to the risk that, because
of change, the description may no longer portray the system in
existence. The potential effectiveness of the specific methodology
and procedures at SEI Financial Management Corporation is
subject to inherent limitations and, accordingly, errors or irregularities
may occur and may not be detected. Furthermore, the projection
of any conclusions, based on our findings, to future periods is
subject to the risk that changes may alter the validity of such
conclusions.
This report is intended solely for use by the management of SEI
Financial Management Corporation and the Securities and Exchange
Commission and should not be used for any other purpose.
Arthur Andersen LLP
/s/ Arthur Andersen LLP
Philadelphia, PA
October 6, 1995
