<PAGE>
------------------------------------------------------
MEYERS PRIDE VALUE FUND
------------------------------------------------------
SEMI-ANNUAL REPORT
November 30, 1997
[Meyers Pride Logo appears here]
<PAGE>
CHAIRWOMAN'S LETTER
- -------------------------------------------------------------------------------
The Meyers Pride Value Fund achieved several important milestones during the
half year period from May 31, 1997 to November 30, 1997. First, the Fund
reached its one year anniversary on June 13, 1997. Second, assets in the Pride
Value Fund surpassed the two million dollar point during this period. Third,
your Fund increased its shareholder base throughout all regions of the country
and beyond US borders. Shareholders now reside in forty-two states, Washington
D.C., the Virgin Islands, and British Columbia, Canada.
For the period of this semi-annual report, your Fund had a total return of
5.50%. Since inception (June 13, 1996), the total return was 29.00%. A more
detailed discussion of the Meyers Pride Value Fund's portfolio and performance
follows this letter in the Report On The Fund.
Your Fund's investment advisor, Meyers Capital Management ("MCM"), has
continued to expand the documented database of companies which follow the
employment policies required by the Fund. Since May 31, 1997, thirty new
companies were added to this database as having verified and specifically
stated anti-discrimination policies in regards to sexual orientation. In
addition, MCM has tracked the efforts of companies to further expand benefits
to be more inclusive of lesbians and gays and provided assistance when
possible. MCM has enlarged its research efforts beyond large, blue chip
companies and is now systematically documenting this information for mid cap
and small cap companies to further expand our universe of potential
investments.
As the manager of the Meyers Pride Value Fund, I believe that it is important
to have our interests directly aligned with the shareholders we serve. For
that reason, all employees at Meyers Capital Management individually own
shares of your Fund. As fellow shareholders, you can be assured that we will
strive to provide a level of service and success that inspires long term
investment by all shareholders.
Thank you and have a Happy, Healthy and Prosperous 1998.
/s/ Shelly J. Meyers
1
<PAGE>
REPORT ON THE FUND
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Since its inception date of June 13, 1996 and through November 30, 1997, the
Meyers Pride Value Fund returned 29%; one year total return was 18.57%. For
the period covering the six months of this semi-annual report (June 1, 1997 to
November 30, 1997), the Fund returned 5.5%. More specifically, for the first
quarter ending August 31, 1997, the Fund returned 8.0%, beating the Standard &
Poor's 500/1/ return of 6.5%; for the second quarter ending November 30, 1997,
the Fund returned -2.4%, lagging the S&P 500 return of 6.7%/2/.
The period from June 1 to August 31, 1997 was very different from the period
from September 1 to November 30, 1997. The market was generally strong during
the summer, and reached record highs in August. The Pride Value Fund's
relative out-performance to the market during this period was primarily aided
by strong performance in its retail, financial and selected technology
holdings.
The three month period from September 1, 1997 to November 30, 1997 was
memorable for its historic price swings. On back to back days at the end of
October, the market experienced the largest one day point drop in history,
followed immediately by the largest one day point gain in history. Although
the Fund outperformed the market on the days of the sharpest point drops, over
this three month period as a whole, the Fund's relative performance was
hindered by some of our largest holdings, such as Eastman Kodak and Sears,
neither of which rebounded at the pace of the market in November. In addition,
technology holdings that we added after sharp price drops, such as Sun
Microsystems, Intel and Advanced Micro Devices, also underperformed the market
through the last weeks of this quarter. We believe that these stocks will be
strong performers over the next twelve to eighteen months.
As of November 30, 1997, the Pride Value Fund had a total of thirty-nine
stocks in the portfolio, and we anticipate that the portfolio will continue to
consist of approximately forty to fifty-five holdings over the next twelve
months. Of the stocks in the portfolio at quarter end, twenty-three showed a
positive return, fifteen stocks were below initial cost basis, and one holding
was unchanged. The Fund's top five equity holdings were: Sears Roebuck (3.7%),
Golden State Bancorp (3.5%), Arrow Electronics (3.4%), Eastman Kodak (3.3%),
and Amgen, Inc. (3.3%). The top ten holdings represent approximately 32% of
the total portfolio.
Looking forward, the Fund will continue to seek investments in undervalued
stocks that we believe will outperform the market over the long term. We
believe that it is particularly important to adhere to this long term value
investment strategy during these periods of market volatility.
- -------------------------
/1/The Standard & Poor's 500 is an unmanaged index that is generally thought
to represent the US stock market.
/2/Past performance is no guarantee of future results; the investment return
and principal value will fluctuate so that an investor's shares may be worth
more or less than the original cost when redeeming. The returns set forth
reflect the waiver of a portion of the Fund's fees. Without the waiver of
fees the total return would have been lower.
2
<PAGE>
MEYERS PRIDE VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
NOVEMBER 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ----------
<C> <S> <C>
COMMON STOCKS (89.9%)
Banking (8.5%)
500 Chase Manhattan Corp. $ 54,312
2,100 Golden State Bancorp* 69,956
150 Wells Fargo & Co. 46,088
----------
170,356
----------
Beverages (2.4%)
1,500 Seagram Co. Ltd. 48,469
----------
Broadcasting (2.4%)
1,400 Viacom Inc.--Cl. B* 49,000
----------
Computer Equipment (15.7%)
666 Commscope Inc.* 7,284
3,100 General Semiconductor Inc.* 33,712
600 Intel Corp. 46,575
400 International Business Machines Corp. 43,825
16,900 Midisoft Corp.* 19,942
2,000 NextLevel Systems Inc.* 26,500
1,700 Seagate Technology Inc.* 38,569
2,500 Silicon Graphics Inc.* 32,813
1,800 Sun Microsystems Inc.* 64,800
----------
314,020
----------
Diversified (1.5%)
700 Tenneco Inc. 30,318
----------
Electric Utility (2.3%)
1,300 Otter Tail Power Co. 45,175
----------
Electrical & Electronics (3.4%)
2,200 Arrow Electronics Inc.* 67,375
----------
Electronic Components/Instruments (5.6%)
3,000 Advanced Micro Devices Inc.* 65,438
1,100 Polaroid Corp. 46,750
----------
112,188
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
3
<PAGE>
MEYERS PRIDE VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, (continued)
NOVEMBER 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ----------
<C> <S> <C>
Insurance (4.1%)
600 Lincoln National Corp. $ 42,825
900 NAC Re Corp. 40,162
----------
82,987
----------
Medical--Hospital Management (5.6%)
1,980 Foundation Health Systems Inc.--Cl. A* 55,564
1,100 United Healthcare Corp. 57,268
----------
112,832
----------
Medical--Equipment & Supplies (2.0%)
900 Boston Scientific Corp.* 40,668
----------
Mining (2.5%)
4,700 Homestake Mining Co. 49,350
----------
Oil/Gas (8.6%)
300 Amoco Corp. 27,000
600 Atlantic Richfield Co. 48,900
1,400 Enron Corp. 54,250
600 Mobil Corp. 43,163
----------
173,313
----------
Pharmaceuticals (5.2%)
1,300 Amgen Inc.* 66,463
400 Merck & Co. Inc. 37,825
----------
104,288
----------
Photography (3.3%)
1,100 Eastman Kodak Co. 66,688
----------
Retail (9.1%)
2,700 Ann Taylor Stores Corp.* 38,475
3,100 Donna Karan International Inc.* 36,619
2,500 Lillian Vernon Corp. 34,844
1,600 Sears, Roebuck & Co. 73,300
----------
183,238
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
4
<PAGE>
MEYERS PRIDE VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, (continued)
NOVEMBER 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ----------
<C> <S> <C>
Telecommunications (2.2%)
800 AT&T Corp. $ 44,700
----------
Transportation--Air (5.5%)
3,900 America West Holdings Corp.--Cl. B* 62,156
400 AMR Corp.* 48,475
----------
110,631
----------
TOTAL COMMON STOCKS (COST $1,760,853) 1,805,596
----------
MONEY MARKET ACCOUNTS (4.3%)
17,708 Bank of New York Cash Reserve 17,708
70,000 Stagecoach Prime Money Market Fund 70,000
----------
TOTAL MONEY MARKET ACCOUNTS (COST $87,708) 87,708
----------
TOTAL INVESTMENTS (94.2%) $1,893,304
(COST $1,848,561)
Other Assets in Excess of Liabilities (5.8%) 115,992
----------
NET ASSETS (100%) $2,009,296
==========
</TABLE>
* Represents non-income producing security.
The accompanying notes are an integral part of the financial statements.
5
<PAGE>
MEYERS PRIDE VALUE FUND
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS
Investments, at value (cost $1,848,561) $1,893,304
Receivable from investment advisor 140,002
Unamortized organization expenses 115,629
Prepaid expenses and other assets 4,103
----------
Total Assets $2,153,038
LIABILITIES
Payable to investment advisor 143,742
----------
Total Liabilities 143,742
----------
NET ASSETS, APPLICABLE TO 155,691 SHARES OF BENEFICIAL
INTEREST $2,009,296
==========
NET ASSETS CONSIST OF:
Capital 1,704,173
Accumulated undistributed net investment loss (4,446)
Accumulated undistributed net realized gain on
investments 264,826
Net unrealized appreciation on investments 44,743
----------
NET ASSETS $2,009,296
==========
NET ASSET VALUE PER SHARE $ 12.91
==========
</TABLE>
The accompanying notes are an integral part of the financial statements.
6
<PAGE>
MEYERS PRIDE VALUE FUND
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED NOVEMBER 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME
Dividend income $ 13,945
EXPENSES
Advisory $ 9,431
Administrative services 1,415
12b-1 fees 2,358
Fund accounting fees and expenses 17,411
Transfer agent and shareholder servicing fees 16,535
Audit 18,000
Organizational 16,507
Legal 12,325
Registration 12,311
Custodian 7,500
Trustees' fees 5,125
Miscellaneous expenses 6,836
--------
Total expenses before waivers/reimbursed 125,754
Less expenses waived (9,431)
Less expenses reimbursed (97,932)
--------
Net Expenses 18,391
--------
NET INVESTMENT LOSS (4,446)
--------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gains on investment transactions 183,539
Net change in unrealized appreciation on investments (97,138)
--------
Net realized and unrealized gains on investments 86,401
--------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 81,955
========
</TABLE>
The accompanying notes are an integral part of the financial statements.
7
<PAGE>
MEYERS PRIDE VALUE FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
NOVEMBER 30, 1997 YEAR ENDED
(UNAUDITED) MAY 31, 1997*
- ---------------------------------------------------------------------------
<S> <C> <C>
INCREASE IN NET ASSETS FROM:
OPERATIONS
Net investment loss $ (4,446) $ (3,659)
Net realized gains on investments 183,539 84,708
Net change in unrealized appreciation on
investments (97,138) 141,881
---------- ----------
Net increase in net assets resulting from
operations 81,955 222,930
---------- ----------
CAPITAL TRANSACTIONS
Proceeds from sale of shares 562,201 1,407,673
Net asset value of shares redeemed (198,281) (67,182)
---------- ----------
Net increase in net assets from capital
transactions 363,920 1,340,491
---------- ----------
Total increase in net assets 445,875 1,563,421
---------- ----------
NET ASSETS
Beginning of period 1,563,421 --
---------- ----------
End of period $2,009,296 $1,563,421
========== ==========
</TABLE>
* Fund commenced operations on June 13, 1996.
The accompanying notes are an integral part of the financial statements.
8
<PAGE>
MEYERS PRIDE VALUE FUND
NOTES TO FINANCIAL STATEMENTS
NOVEMBER 30, 1997
(UNAUDITED)
- -------------------------------------------------------------------------------
1. ORGANIZATION. The Meyers Pride Value Fund (the "Fund") is a separate series
of the Meyers Investment Trust (the "Trust"), a business trust organized under
the laws of the State of Delaware. The Fund was formerly known as the Meyers
Sheppard Pride Fund, and the Trust was formerly known as the Meyers Sheppard
Investment Trust. The Fund is registered under the Investment Company Act of
1940, as amended (the "1940" Act), as an open-ended, no-load, diversified
management investment company. The Fund's overall investment objective is to
attain long-term capital appreciation by investing in a diversified portfolio
of equity securities believed by the investment adviser to be under-valued but
nevertheless fundamentally sound companies and generally having progressive
policies towards gays and lesbians, but at a minimum having in place
specifically stated policies against discrimination in hiring and promotion
based upon sexual orientation. Prior to June 13, 1996 (commencement of
operations), the Fund had no operations other than the sale of 10,003 shares
of common stock at $10.00 per share, to initial seed capital investors.
2. SIGNIFICANT ACCOUNTING POLICIES. The following are significant accounting
policies followed by the Fund in the preparation of these financial
statements. The policies are in conformity with generally accepted accounting
principles. The preparation of financial statements 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 income and expenses for the period. Actual results could differ from these
estimates.
A. SECURITY VALUATION. Equity securities held by the Fund are valued at the
last sale price on the exchange on which they are primarily traded, or on the
NASDAQ system for unlisted national market issues, or at the last quoted bid
price for securities in which there were no sales during the day or for
unlisted securities not reported on the NASDAQ system. Short-term obligations,
with remaining maturities of 60 days or less, are valued at amortized cost,
which approximates market value. Fund securities (other than short-term
obligations with remaining maturities of less than sixty days) for which there
are no such quotations or valuations, are valued at fair value as determined
in good faith by or at the direction of the Fund's Board of Trustees.
B. SECURITY TRANSACTIONS AND INVESTMENT INCOME. Securities transactions are
recorded on a trade date basis and dividend income is recorded on the ex-
dividend date. Realized gains and losses from securities transactions are
recorded on the identified cost basis. Interest income, including, where
applicable, amortization of premium and accretion of discount on investments,
is accrued daily.
C. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends from net investment
income and distributions of net realized gains are normally declared and paid
annually by the Fund. The Fund records dividends and distributions to
shareholders on the ex-dividend date. The amount of dividends and
distributions from net investment income and net realized capital gains are
determined in accordance with federal income tax regulations which may differ
from generally accepted accounting principles. These "book/tax" differences
are either temporary or permanent in nature. To the extent these differences
are permanent in nature, such amounts are reclassified within the capital
accounts based on their federal tax-basis treatment; temporary differences do
not require reclassification.
D. FEDERAL INCOME TAXES. It is the policy of the Fund to qualify or to
continue to qualify as a regulated investment company by complying with the
provisions available to certain investment companies, as defined in
9
<PAGE>
MEYERS PRIDE VALUE FUND
NOTES TO FINANCIAL STATEMENTS, (continued)
(UNAUDITED)
- -------------------------------------------------------------------------------
applicable sections of the Internal Revenue Code, and to make distributions of
net investment income and net realized capital gains sufficient to relieve it
from all, or substantially all, federal income taxes.
E. ORGANIZATIONAL EXPENSES. Costs incurred in connection with the organization
and initial registration of the Fund have been deferred and are being
amortized over a sixty-month period, beginning with the Fund's commencement of
operations. In the event any of the initial shares of the Fund are redeemed
during the amortization period, the redemption proceeds will be reduced pro
rata portion of any unamortized organizational expenses in the proportion that
the number of shares being redeemed bears to the number of initial shares
outstanding at the time of redemption.
3. SECURITY TRANSACTIONS. Purchases and sales of securities for the period
ended November 30, 1997, other than short-term securities, amounted to
$853,465, and $601,262, respectively. The cost of securities is substantially
the same for federal income tax purposes as it is for financial reporting
purposes.
<TABLE>
<S> <C>
Aggregate cost $1,848,561
==========
Gross unrealized appreciation $ 180,738
Gross unrealized depreciation (135,995)
----------
Net unrealized appreciation $ 44,743
==========
</TABLE>
4. CAPITAL SHARE TRANSACTIONS. The Fund's Articles of Incorporation permit the
Fund to issue an unlimited number of full and fractional shares of beneficial
interest (par value $0.00001). Transactions in shares for the period ended
November 30, 1997, were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED
NOVEMBER 30, 1997 YEAR ENDED
(UNAUDITED) MAY 31, 1997
------------------ -------------------
SHARES AMOUNT SHARES AMOUNT
------- --------- ------- ----------
<S> <C> <C> <C> <C>
Shares sold 43,286 $ 562,201 133,466 $1,407,673
Shares redeemed (15,462) (198,281) (5,599) (67,182)
------- --------- ------- ----------
Net increase in shares 27,824 $ 363,920 127,867 $1,340,491
======= ========= ======= ==========
</TABLE>
5. INVESTMENT MANAGEMENT, ADMINISTRATION AND DISTRIBUTION AGREEMENTS. The
Investment Manager of the Fund, Meyers Capital Management, LLC, serves as the
Fund's manager and investment adviser pursuant to an Investment Management
Agreement. The Investment Management Agreement provides that the Fund pays the
Investment Manager for its management and investment advisory services, a
monthly fee equal, on an annual basis, to 1.00% of the Fund's average daily
net assets. The Investment Manager has undertaken to waive a portion of its
investment adviser fee and to reimburse the Fund for expenses necessary to
assist the Fund in maintaining a competitive expense ratio of no more than
1.95% (annualized) of average daily net assets. For the period ended November
30, 1997, the Investment Manager earned $9,431 and waived fees of $9,431. In
addition, the Investment Manager reimbursed the Fund $97,932.
10
<PAGE>
MEYERS PRIDE VALUE FUND
NOTES TO FINANCIAL STATEMENTS, (continued)
(UNAUDITED)
- -------------------------------------------------------------------------------
BISYS LP, with whom certain officers and trustees of the Fund are affiliated,
serves the Fund as Administrator. Such officers and trustees are paid no fees
directly by the Fund for serving as officers and trustees of the Fund. In its
capacity as the Fund's Administrator, BISYS Fund Services Limited Partnership
LP ("BISYS LP") provides certain administrative and managerial support
services to the Fund. In consideration of which BISYS LP is paid an annual
administration fee equal to 0.15% of the first $100 million in aggregate Fund
assets, 0.10% for the next $400 million, 0.07% for the next $500 million and
0.06% for aggregate Fund assets in excess of $1 billion. For the period ended
November 30, 1997, BISYS LP earned administrative fees of $1,415.
As Fund Accounting Agent, BISYS Fund Services, Inc. ("BISYS"), receives a fee
of $35,000 per year, plus reimbursement of out-of-pocket expenses. For the
period ended November 30, 1997, BISYS earned fund accounting fees of $17,411.
In its capacity as Transfer Agent, BISYS provides dividend disbursing and
transfer agency services to the Fund and its shareholders. BISYS receives a
transfer agency fee equal to $15/year per each shareholder of the Fund,
subject to a $12,000 per year minimum. For the period ended November 30, 1997,
BISYS earned transfer agency fees of $16,535.
The Trustees of the Trust have adopted a Plan of Distribution (the
"Distribution Plan") with respect to the Fund in accordance with Rule 12b-1
under the Investment Company Act, after having concluded that there is a
reasonable likelihood that the Distribution Plan will benefit the Fund and its
shareholders. As contemplated by the Distribution Plan, BISYS LP acts as agent
of the Fund in connection with the offering of shares of the Fund pursuant to
the Distribution Agreement. BISYS LP also acts as the Fund's Distributor, and
is responsible for facilitating the continuous sale or redemption of Fund
shares. Solely for the purpose of reimbursing BISYS LP for activities
primarily intended to result in the sale of Fund shares, the Trust has, on
behalf of the Fund, adopted the Distribution Plan wherein, pursuant to Rule
12b-1 of the Investment Company Act, the Fund is authorized to accrue daily
and pay monthly up to 0.25% of the Fund's average daily net assets for
services rendered in connection with the distribution of shares of the Fund.
For the period ended November 30, 1997, BISYS LP retained distribution fees of
$1,974.
11
<PAGE>
MEYERS PRIDE VALUE FUND
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
SELECTED RATIOS AND DATA FOR A SHARE OF SIX MONTHS ENDED
BENEFICIAL INTEREST OUTSTANDING THROUGHOUT NOVEMBER 30, 1997 YEAR ENDED
THE PERIOD: (UNAUDITED) MAY 31, 1997*
- ---------------------------------------------------------------------------------
<S> <C> <C>
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.23 $ 10.00
------- -------
Net investment loss (0.03) (0.03)
Net realized and unrealized gains on
investments 0.71 2.26
------- -------
NET ASSET VALUE, END OF PERIOD $ 12.91 $ 12.23
======= =======
TOTAL RETURN 18.57%(a) 22.30%(a)
RATIOS/SUPPLEMENTARY DATA:
Net assets, end of period (in thousands) $ 2,009 $ 1,563
Ratio of expenses to average net assets 1.95%(b) 2.09%(b)
Ratio of net investment loss to average net
assets (0.47%)(b) (0.48%)(b)
Ratio of expenses to average net assets** 13.32%(b) 41.61%(b)
Ratio of net investment loss to average net
assets** (11.84%)(b) (40.00%)(b)
Portfolio turnover rate 35.81% 42.46%
Average commission rate per share (c) $0.0664 $0.0671
</TABLE>
- --------
* Fund commenced operations on June 13, 1996.
** During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Not annualized.
(b) Annualized.
(c) Represents the total dollar amount of commissions paid on portfolio
transactions divided by total number of portfolio shares purchased and
sold for which commissions were charged.
The accompanying notes are an integral part of the financial statements.
12
<PAGE>
MEYERS PRIDE VALUE FUND
TRUSTEES AND OFFICERS
Shelly J. Meyers
Trustee (Chairperson of the Board) and President
Leslie C. Sheppard
Trustee and Executive Vice President
Robert E. Gipson, Esq.
Trustee
Leonard Greenhalgh, M.B.A., Ph.D.
Trustee
Duane E. McWaine, M.D.
Trustee
Mark Sichley
Vice President
Frank Deutchki
Treasurer
Philip McKinley
Secretary
Matthew Constancio
Assistant Secretary
Ellen Stoutamire
Assistant Secretary
Alaina Metz
Assistant Secretary
INVESTMENT MANAGER
Meyers Capital Management, LLC
8901 Wilshire Boulevard
Beverly Hills, CA 90211
DISTRIBUTOR AND ADMINISTRATOR
BISYS Fund Services Limited Partnership
3435 Stelzer Road
Columbus, OH 43219
FUND ACCOUNTING AGENT
AND TRANSFER AGENT
BISYS Fund Services, Inc.
3435 Stelzer Road
Columbus, OH 43219
CUSTODIAN
BNY Western Trust Company
700 South Flower Street, Suite 250
Los Angeles, CA 90017
LEGAL COUNSEL
Mayer, Brown & Platt
1675 Broadway, Suite 1900
New York, NY 10019
INDEPENDENT AUDITORS
KPMG Peat Marwick LLP
Two Nationwide Plaza
Columbus, OH 43215
1/98
