<p>Notes to Financial Statements
New York Tax Exempt 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 as high a level of current income exempt from federal income tax
and New York State personal income tax as the Advisor believes is consistent with the preservation of capital.
Shares of the Series are offered to investors, employees and clients of Manning & Napier Advisors, Inc. (the
"Advisor"), doing business as Exeter Asset Management, and its affiliates. 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 December 31,
2001, 892.5 million shares have been designated in total among 17 series, of which 50 million have been
designated as New York Tax Exempt Series Common Stock.
2. SIGNIFICANT ACCOUNTING POLICIES
Municipal securities will normally be valued on the basis of market valuations provided by an independent pricing
service (the "Service"). The Service utilizes the latest price quotations and a matrix system (which considers such
factors as security prices of similar securities, yields, maturities, and ratings). The Service has been approved by
the Fund's Board of Directors.
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 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
SECURITY TRANSACTIONS, INVESTMENT INCOME AND EXPENSES
Security transactions are accounted for on trade date. Interest income, including amortization of premium and