Dear Shareholders:
- --------------------------------------------------------------------------------
Most Asian stock markets continued to consolidate in 1995. The fourth
quarter started on a weak note as continued strong performance in the U.S.
market dominated investors' interest and attracted cash flows. Lexington Crosby
Small Cap Asia Growth Fund declined by 2.2%* since it commenced operations on
July 3, 1995, as compared to the unmanaged Morgan Stanley Capital International
All Country Far East ex-Japan Index over the same period which declined by
1.62%.
The Fund has concentrated on building a portfolio of core holdings mainly in
fundamentally attractive small and medium sized stocks in Asia which benefit
from the region's dynamics, such as high economic growth rates and favorable
demographics (35% of the 2.5 billion people under 15 years of age, 30% savings
ratios, substantial foreign investment, a growing middle class and increasing
intra-regional trade).
Our focused investment approach has identified relatively liquid,
under-researched and therefore, under-valued stocks which have superior but
sustainable long-term earnings growth prospects and those which have a
competitive edge in terms of costs, technology, an extensive and established
distribution network or a well-known franchise or local brand name.
Regional markets recovered late in the quarter, triggered by the 25 basis
point cut in interest rates in the U.S., the expectation for further cuts in the
medium term and a re-focus on Asia's sound economic fundamentals. Stock market
performance in Asia in the fourth quarter of 1995 was mixed, ranging from the
4.7% increase in Indonesia to the 17.1% drop in the 'H' share market. Hong Kong
and Australia returned gains of 4.4% and 3.2%, respectively, while Taiwan and
Singapore rose 2.2% and 1.2%. Meanwhile, Malaysia, Thailand, the Philippines and
Korea lost 0.5%, 0.7%, 1.3% and 9.5%, respectively.
Outlook and Strategy
We believe that 1996 will be a better year than 1995, which was
characterized by repeated downward revisions in both global and economic
projections and corporate earnings forecasts. As a result, investor expectations
have fallen to reasonable, or possibly over-conservative levels. We, therefore,
believe that there is a good chance of positive economic and earnings growth
surprises in 1996, especially in the latter half of the year, as the impact of
the recent interest rate cuts filter through the economies. This is particularly
true in the case of the U.S. and Japan. We believe that interest rates in the
U.S. are on a downward trend in view of the continued slowing in the economy.
The budget impasse is expected to slow the economy further, which will justify
rate reductions in the medium term.
Recovery in Europe may come more slowly since the economies are facing
contractionary fiscal policies. However, the eventual easing of monetary policy
throughout Europe may result in a growth rate which is above the consensus. We
expect these factors to have a favorable impact on investor sentiment and the
performance of the financial markets.
1
<PAGE>
In terms of cash flow, we expect to see a continuing return of investment
money into the Asian stock markets this year, as the out-performance of the U.S.
market in 1995 has meant that the valuation of the Asian bourses, while off
their lows seen in the first quarter of 1995, are still historically attractive.
The fundamentals of the Asian economies remain sound, supported by vibrant
infrastructural activity, and in some cases, strong consumer demand. In
addition, the regional governments are committed to keeping overheating in the
economies to a minimum, thus allaying investors' concerns on this front.
We believe that the Hong Kong, Taiwan, Korea, Indonesia and India stock
markets have the potential to be re-rated upwards. We have already increased the
Fund's exposure to Hong Kong in the consumer-related industry; for example,
systems integration company, Founder; film distributor, Golden Harvest; and also
the infrastructure sector and added to existing holdings in Indonesia. We will
seek opportunities to acquire shares in the consumer and trade-related
industries in Taiwan.
While we expect some uncertainty in India in the run-up to its elections in
April this year, we are looking for attractive companies, mainly in the areas of
consumer and infrastructure. Korea, which is experiencing an economic slowdown,
political uncertainty and is suffering as a result of President Roh's slush fund
scandal, also looks attractive in the longer term and we will acquire
investments when opportunities arise.
The Fund's weighting in Singapore has been increased in companies such as
beverage producer Fraser & Neave and systems integration company, CSA Holdings,
which are benefiting from the increasing economic development and prosperity in
the region. An investment in Gadek, which operates in the finance/insurance
sector in Malaysia, was added. While there is little likelihood of a significant
re-rating in this stock market in the absence of healthier economic numbers, we
believe that careful stock selection will result in attractive gains in the
long-term. Despite these additions, underweight positions are expected to be
maintained in both Singapore and Malaysia.
We have made an investment in PLDT, the country's largest telephone company,
which is well-placed to benefit from the continued growth in the Philippines
economy. We expect to maintain the Fund's investments in the Philippines and
will consider increasing weightings when concerns about high inflation subside.
In Thailand, we will continue to focus our attention on the stocks which are
exposed to the consumer sector, such as banking and the producers of automotive
components and electrical equipment. We will also maintain the Fund's holdings
in companies benefiting from the continued infrastructure activities in the
country and those catering to the external economy.
2
<PAGE>
We expect to maintain cash at approximately 2-3% this quarter. In view of
our expectation of better performance in the Asian stock markets in 1996, we
will reduce the Fund's Australian exposure accordingly.
Sincerely,
Nigel Webber Christina Lam Robert M. DeMichele
Portfolio Manager Portfolio Manager President
January, 1996 January, 1996 January, 1996
_____________________________________________________________________________
GRAPH
Paper version of this shareholder report contains a graph comparing the
changes in value of a $10,000 investment in
Lexington Crosby Small Cap Asia Growth Fund,
the unmanaged Morgan Stanley Capital International (EAFE) Index
and the unmanaged Morgan Stanley Capital International
All Country Far East ex-Japan Index
_____________________________________________________________________________
*-4.39% is the since commencement (7/3/95) average annual standard total
return for the period ended December 31, 1995. 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 their original cost. Total return
represents past performance.
3
<PAGE>
Lexington Crosby Small Cap Asia Growth Fund, Inc.
Statement of Net Assets
(Including the Portfolio of Investments)
December 31, 1995
Left Col.
Number of Value
Shares Security (Note 1)
- --------------------------------------------------------------------------------
Australia: 6.7%
11,500 Broken Hill Proprietary Company, Ltd. .......... $ 162,236
90,000 Delta Gold NL1 ................................. 217,850
250,000 SGIO Insurance, Ltd. ........................... 217,181
----------
597,267
----------
Hong Kong: 29.2%
192,000 ASM Pacific Technology ......................... 166,374
810,000 Chaifa Holdings, Ltd. .......................... 212,138
380,000 China Hong Kong Photo Productions .............. 215,016
394,000 Espirit Asia Holdings, Ltd. .................... 135,036
800,000 Founder Hong Kong, Ltd.1 ....................... 183,135
784,000 Golden Harvest Entertainment, Ltd. ............. 207,863
490,000 Harbin Power Equipment
Company, Ltd. ................................. 72,245
20,000 Henderson Land Development
company, Ltd. ................................. 120,538
17,600 HSBC Holdings Plc .............................. 266,322
31,000 Hutchinson Whampoa, Ltd. ....................... 188,839
44,000 New World Development
Company, Ltd. ................................. 191,774
700,000 Northeast Electrical Transmission and
Transformation Machinery
Manufacturing1 ................................ 114,071
387,000 Sinocan Holdings, Ltd. ......................... 137,642
86,000 Varitronix International, Ltd. ................. 159,609
1,500,000 Wong's International Holdings, Ltd. ............ 240,559
----------
2,611,161
----------
Indonesia: 11.1%
80,000 PT Astra International ......................... 166,375
390,000 PT Gajah Tunggal ............................... 217,710
91,000 PT Mulia Industrindo ........................... 256,983
88,000 PT Semen Gresik ................................ 246,585
115,500 PT Sekar Bumi1 ................................. 101,138
----------
988,791
----------
Right Col.
Number of Value
Shares Security (Note 1)
- --------------------------------------------------------------------------------
Malaysia: 10.9%
36,000 ACP Industries Bhd ............................. $ 148,198
40,000 Arab Malaysian Corporation Bhd ................. 144,968
108,000 Ekran Bhd ...................................... 263,778
25,000 Gadek Malaysian Bhd ............................ 128,028
40,000 Road Builder (M) Holdings Bhd .................. 138,665
106,000 Tiong Nam Transport Holdings
Bhd ........................................... 154,501
----------
978,138
----------
Philippines: 6.5%
1,025,000 Aboitiz Equity Ventures, Inc. .................. 195,536
4,400 Philippine Long Distance ....................... 239,222
911,000 Steniel Manufacturing Corporation .............. 145,982
----------
580,740
----------
Singapore: 9.7%
60,000 DBS Land, Ltd. ................................. 202,858
17,000 Fraser & Neave, Ltd. ........................... 216,438
270,000 Seksun Precision Engineering ................... 255,906
20,000 United Overseas Bank, Ltd. ..................... 192,389
----------
867,591
----------
Thailand: 8.6%
16,000 Italian Thai Development Plc ................... 163,940
26,000 K.R. Precision Public Company, Ltd. ............ 181,732
48,000 Krung Thai Bank Public
Company, Ltd. ................................. 196,346
29,500 Sanyo Universal Electric
Company, Ltd. ................................. 128,872
34,000 Thai Stanley Electric Public
Company, Ltd. ................................. 94,519
----------
765,409
----------
TOTAL INVESTMENTS: 82.7%
(cost $7,259,146+) (Note 1) ................... 7,389,097
Other assets in excess
of liabilities: 17.3% ......................... 1,546,867
----------
TOTAL NET ASSETS: 100%
(equivalent to $9.76 per share on
915,788 shares outstanding) ................... $8,935,964
==========
1Non-income producing securities.
+Aggregate cost for Federal income tax purposes is identical.
4
<PAGE>
Lexington Crosby Small Cap Asia Growth Fund, Inc.
Statement of Net Assets
(Including the Portfolio of Investments)
December 31, 1995 (continued)
- --------------------------------------------------------------------------------
The composition of the Fund's net assets by industry concentration was as
follows:
Banking ................. 7.3%
Capital Equipment ....... 6.2
Construction & Housing .. 2.9
Consumer Durable ........ 4.0
Consumer Nondurable .... 3.6
Electric & Electronics .. 12.3
Financial Services ...... 8.4%
Gold .................... 2.4
Materials ............... 10.8
Multi-Industry .......... 5.6
Real Estate ............. 5.8
Services ................ 7.7
Transportation .......... 1.7%
Utilities ............... 4.0
Other assets ............ 17.3
-----
Total Net Assets 100.0%
=====
----------------
Lexington Crosby Small Cap Asia Growth Fund, Inc.
Statements of Assets and Liabilities
December 31, 1995
<TABLE>
<S> <C>
Assets
Investments in securities, at value (cost $7,259,146) (Note 1) ........................... $ 7,389,097
Cash ..................................................................................... 2,546,142
Receivable for shares sold ............................................................... 38,520
Dividends and interest receivable ........................................................ 13,738
Due from Lexington Management Corporation (Note 2) ....................................... 2,698
Deferred organization expenses, net (Note 1) ............................................. 61,892
-----------
Total Assets 10,052,087
-----------
Liabilities
Payable for investment securities purchased .............................................. 1,003,349
Payable for shares redeemed .............................................................. 3,591
Accrued expenses ......................................................................... 103,922
Distributions payable .................................................................... 5,261
-----------
Total Liabilities .................................................................... 1,116,123
-----------
Net Assets (equivalent to $9.76 per share on 915,788 shares outstanding) (Note 3) ........ $ 8,935,964
===========
Net Assets consist of:
Capital stock-authorized 1,000,000,000 shares,
$.001 par value per share .............................................................. $ 916
Additional paid-in capital ............................................................... 9,031,688
Distributions in excess of net investment income (Note 1) (1,869)
Accumulated net realized loss on investments and foreign currency holdings (Note 1) (224,473)
Net unrealized appreciation of investments and foreign currency holdings ................. 129,702
-----------
$ 8,935,964
===========
</TABLE>
The Notes to Financial Statements are an integral part of these statements.
5
<PAGE>
Left Col.
Lexington Crosby Small Cap
Asia Growth Fund, Inc.
Statement of Operations
July 3, 1995 (commencement of operations) to
December 31, 1995
Investment Income
Dividends ........................... $ 47,137
Interest ............................ 21,223
---------
68,360
Less: foreign tax expense ........... 3,799
---------
Investment income ............. $ 64,561
Expenses
Investment advisory fee (Note 2) ... 35,576
Accounting and shareholder
services expenses (Note 2) ........ 4,337
Custodian and transfer agent
expenses .......................... 17,840
Printing and mailing ............... 9,247
Directors' fees and expenses ....... 4,886
Audit and legal .................... 14,148
Registration fees .................. 1,845
Computer expense ................... 1,871
Other expenses ..................... 3,485
Amortization of deferred
organization expenses (Note 1) .... 6,735
---------
Total expenses .................... 99,970
Less: expenses recovered
under contract with
investment advisor
(Note 2) .................... 50,163 49,807
--------- ---------
Net investment income 14,754
Realized and Unrealized Gain
(Loss) on Investments (Note 4)
Net realized gain (loss) on:
Investments .................... (224,473)
Foreign currency
transactions .................. 1,958
---------
Net realized loss (222,515)
Net change in unrealized
appreciation (depreciation) on:
Investments ....................... 129,951
Foreign currency translations
of other assets and liabilities .. (249)
---------
Net change in unrealized
appreciation ................. 129,702
---------
Net realized and unrealized
loss on investments .......... (92,813)
---------
Decrease in Net Assets
Resulting from Operations .......... $ (78,059)
=========
Right Col.
Lexington Crosby Small Cap
Asia Growth Fund, Inc.
Statement of Changes in
Net Assets
July 3, 1995 (commencement of
operations) to December 31, 1995
Net investment income ............................... $ 14,754
Net realized loss from investments and
foreign currency transactions ........................ (222,515)
Increase in unrealized appreciation of
investments and foreign currency
holdings ............................................. 129,702
----------
Net decrease in net assets resulting
from operations ................................. (78,059)
Distribution to shareholders from net
investment income ................................... (18,581)
Increase in net assets from capital share
transactions (Note 3) ................................ 9,032,604
----------
Net increase in net assets ........................ 8,935,964
Net Assets:
Beginning of period ----
----------
End of period (including distributions
in excess of net investment income
of $1,869) .......................................... $8,935,964
==========
The Notes to Financial Statements are an integral part of these statements.
6
<PAGE>
Lexington Crosby Small Cap Asia Growth Fund, Inc.
Notes to Financial Statements
December 31, 1995
1. Significant Accounting Policies
Lexington Crosby Small Cap Asia Growth Fund, Inc. (the "Fund") is an open end
diversified management investment company registered under the Investment
Company Act of 1940, as amended. The Fund's investment objective is to seek
long-term capital appreciation through investment in common stocks and
equivalents of companies domiciled in the Asia region with a market
capitalization of less than $1 billion. The Fund commenced operations on July 3,
1995. 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 security transactions are reported on the
identified cost basis. Investments are stated at market value based on closing
prices reported by the exchange on which the securities are traded on the last
business day of the period or, for over-the-counter securities, at the average
between bid and asked prices, except for short-term securities which are stated
at amortized cost, which approximates market value. Securities for which market
quotations are not readily available and other assets are valued at fair value
as determined by management and approved in good faith 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. Dividends and distributions to shareholders are recorded on
the ex-dividend date. Interest income 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
settled and are reported in the statement of operations.
Distributions In accordance with Statement of Position 93-2: Determination,
Disclosure and Financial Statement Presentation of Income, Capital Gain and
Return of Capital Distributions by Investment Companies, as of December 31, 1995
book and tax basis differences amounting to $1,958 have been reclassified from
accumulated net realized loss on investments and foreign currency holdings to
distributions in excess of net investment income.
Federal Income Taxes It is the Fund's intention 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 has been made.
Deferred Organization Expenses Organization expenses aggregating $67,351
have been deferred and are being amortized on a straight-line basis over five
years.
2. Investment Advisory Fee and Other Transactions with Affiliate
The Fund pays an investment advisory fee to Lexington Management Corporation
("LMC") at the rate of 1.25% of average daily net assets. In connection with
providing investment advisory services, LMC has entered into a sub-advisory
contract with Crosby Asset Management (U.S.), Ltd. ("Crosby") under which Crosby
provides the Fund with investment management services. Pursuant to the terms of
the sub-advisory contract between LMC and Crosby, LMC pays Crosby a monthly
sub-advisory fee at the annual rate of 0.625% of the Fund's average daily net
assets. LMC has agreed to voluntarily limit the total expenses of the Fund
(excluding interest, taxes, brokerage commissions and extraordinary expenses but
7
<PAGE>
Lexington Crosby Small Cap Asia Growth Fund, Inc.
Notes to Financial Statements
December 31, 1995 (continued)
2. Investment Advisory Fee and Other Transactions with Affiliate (continued)
including management fee and operating expenses) to an annual rate of 1.75% of
the Fund's average net assets, through April 30, 1996 or such later date as to
be determined by LMC. The investment advisory fee and expense reimbursement are
set forth in the statement of operations.
The Fund also reimburses LMC for certain expenses, including accounting and
shareholder servicing costs, which are incurred by the Fund, but paid by LMC.
3. Capital Stock
Transactions in capital stock were as follows:
July 3, 1995
(commencement of operations)
to December 31, 1995
----------------------------
Shares Amount
--------- ----------
Shares sold ........................ 1,003,607 $9,916,274
Shares issued to shareholders on
reinvestment of dividends ........ 1,372 13,320
--------- ----------
1,004,979 9,929,594
Shares redeemed .................... (89,191) (896,990)
--------- ----------
Net increase ....................... 915,788 $9,032,604
========= ==========
4. Purchases and Sales of Investment Securities
The cost of purchases and proceeds from sales of securities for the six months
ended December 31, 1995, excluding short-term securities, were $8,584,767 and
$1,101,149, respectively.
At December 31, 1995, aggregate gross unrealized appreciation for all
securities and foreign currency holdings (including foreign currency receivables
and payables) in which there is an excess of value over tax cost amounted to
$512,351 and aggregate gross unrealized depreciation for all securities and
foreign currency holdings in which there is an excess of tax cost over value
amounted to $382,649.
5. Investment 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 currency contracts as the result of the potential inability of
counterparties to meet the terms of their contracts.
8
<PAGE>
Lexington Crosby Small Cap Asia Growth Fund, Inc.
Financial Highlights
July 3, 1995 (commencement of operations) to December 31, 1995
<TABLE>
Selected per share data for a share outstanding throughout the period:
<S> <C>
Net asset value, beginning of period ....................................... $10.00
------
Income (loss) from investment operations:
Net investment income .................................................... 0.02
Net realized and unrealized loss on investments .......................... (0.24)
------
Total loss from investment operations .................................... (0.22)
------
Less distributions:
Dividends from net investment income ..................................... (0.02)
Net asset value, end of period ............................................. $ 9.76
======
Total return ............................................................... (4.39)%*
Ratio to average net assets:
Expenses, before reimbursement or waiver ................................. 3.51%*
Expenses, net of reimbursement or waiver ................................. 1.75%*
Net investment loss, before reimbursement or waiver ...................... (1.24)%*
Net investment income .................................................... 0.52%*
Portfolio turnover ......................................................... 40.22%*
Net assets at end of period (000's omitted) ................................ $8,936
======
*Annualized
</TABLE>
9
<PAGE>
Independent Auditors' Report
The Board of Directors and Shareholders
Lexington Crosby Small Cap Asia Growth Fund, Inc.:
We have audited the accompanying statements of net assets (including the
portfolio of investments) and assets and liabilities of Lexington Crosby Small
Cap Asia Growth Fund, Inc. as of December 31, 1995, and the related statements
of operations, changes in net assets, and the financial highlights for the
period from July 3, 1995 (commencement of operations) to December 31, 1995.
These financial statements and financial highlights are the responsibility of
the Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 1995 by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Lexington Crosby Small Cap Asia Growth Fund, Inc. as of December 31, 1995, and
the results of its operations, its changes in its net assets and the financial
highlights for the period from July 3, 1995 to December 31, 1995, in conformity
with generally accepted accounting principles.
KPMG Peat Marwick LLP
New York, New York
January 29, 1996
10
<PAGE>
Right Col.
The Lexington Group of
No Load Investment Companies
Lexington Worldwide Emerging Markets Fund, Inc.-Seeks long-term growth of
capital primarily through investment in equity securities of companies domiciled
in, or doing business in, emerging countries and emerging markets.
Lexington Global Fund, Inc.-Seeks long-term growth of capital primarily through
investment in common stocks of companies domiciled in foreign countries and the
United States. Lexington International Fund, Inc.-Seeks long-term growth of
capital through investment in companies domiciled in foreign countries.
Lexington Crosby Small Cap Asia Growth Fund, Inc.-Seeks long-term capital
appreciation through investment in companies domiciled in the Asia Region with a
market capitalization of less than $1 billion.
Lexington Ramirez Global Income Fund-Seeks high current income. Capital
appreciation is a secondary objective. The Fund invests in a combination of
foreign and domestic high-yield, lower rated debt securities.
Lexington Goldfund, Inc.-Seeks capital appreciation through investment in gold
bullion and shares of gold mining companies.
Lexington Growth and Income Fund, Inc.-Seeks capital appreciation over the
long-term through investments in the stocks of large, ably managed and well
financed companies.
Lexington Corporate Leaders Trust Fund-Seeks capital growth and reasonable
income through investment in an equal number of shares of an established list of
American blue chip corporations.
Lexington SmallCap Value Fund, Inc.-Seeks long-term capital appreciation through
investment in common stocks of companies domiciled in the United States with a
market capitalization of less than $1 billion.
Lexington Convertible Securities Fund-Seeks total return by providing capital
appreciation, current income and conservation of capital through investments in
a diversified portfolio of securities convertible into shares of common stock.
Lexington GNMA Income Fund, Inc.-Seeks to achieve a high level of current
income, consistent with liquidity and safety of principal, through investment
primarily in mortgage-backed GNMA ("Ginnie Mae") certificates that are
guaranteed as to the timely payment of principal and interest by the United
States Government.
Lexington Money Market Trust-Seeks a high level of current income consistent
with preservation of capital and liquidity through investments in interest
bearing short-term money market instruments.
Lexington Tax Free Money Fund, Inc.-Seeks current income exempt from Federal
income taxes while maintaining stability of principal, liquidity and
preservation of capital.
For more complete information about any of the Lexington Funds and a prospectus
which includes management fee and expenses call the distributor toll-free at
1-800-526-0056. Read the prospectus carefully before you invest or send money.
11
Left Col.
LEXINGTON
INVESTOR SERVICES
- --------------------------------------------------------------------------------
As a Lexington shareholder, you should be aware of the many services available
to you.
No Load-The Lexington Funds are no load funds. That is, investments and
redemptions are made without any sales charges, commissions or redemption fees.
----------------
Free Telephone Exchange-Investments in the Lexington Funds may be exchanged for
shares of a different Lexington Fund at any time.
----------------
Check Writing Privileges-Lexington Money Market Trust and Lexington Tax Free
Money Fund permit investors immediate access to their funds with check writing
for withdrawals from their account.
----------------
Tax Sheltered Plans-IRA, Keogh, Pension, and Profit Sharing Prototype Plans are
available to qualified individuals. These plans offer investment flexibility
through the Share Exchange Service, simplified record keeping, convenience and
investment supervision.
----------------
Custodial Accounts for Minors-Investments may be made on behalf of minors under
the Uniform Gifts to Minors Act currently in effect in all states.
----------------
Systematic Withdrawal Plan-An investor may elect to receive a fixed amount from
his or her account each month or quarter, subject to certain minimums.
----------------
Complete Record Keeping-A statement is provided for every transaction in
addition to a year-end statement with tax information.
<PAGE>
Left Col.
Lexington
Crosby Small Cap Asia Growth Fund, Inc.
Investment Adviser
- --------------------------------------------------------------------------------
LEXINGTON MANAGEMENT CORPORATION
P.O. Box 1515
Park 80 West Plaza Two
Saddle Brook, New Jersey 07663
Sub-Adviser
- --------------------------------------------------------------------------------
CROSBY ASSET MANAGEMENT (US), INC.
c/o Crosby Asset Management (Hong Kong) Limited
25/F Inchcape Insurance Tower
3 Lockhard Road
Wan Chai, Hong Kong
Distributor
- --------------------------------------------------------------------------------
LEXINGTON FUNDS DISTRIBUTOR, INC.
P.O. Box 1515
Park 80 West Plaza Two
Saddle Brook, New Jersey 07663
--------------------------------------------------
All shareholder requests for services of
any kind should be sent to:
Transfer Agent
--------------------------------------------------
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
--------------------------------------------------
- --------------------------------------------------------------------------------
(800) 526-0052
"LEXLINE"
24 hour toll-free telephone access to your
Lexington Fund account
Price/Yield * Account Balances * Exchanges *
Last Transactions * Total Return * Duplicate Statements
- --------------------------------------------------------------------------------
This report has been prepared for the information of the shareholders of
Lexington Crosby Small Cap Asia Growth Fund, Inc. 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.
Right Col.
LEXINGTON
-------------------------------------------
LEXINGTON
CROSBY
SMALL CAP
ASIA GROWTH
FUND, INC.
(filled box)
Seeks long-term capital
appreciation through investment
in companies domiciled in the Asia
Region with a market capitalization
of less than $1 billion.
(filled box)
ANNUAL REPORT
DECEMBER 31, 1995
The Lexington Group
of No Load
Investment Companies
-------------------------------------------
