================================================================================
BOYAR VALUE FUND, INC.
----------------------
ANNUAL REPORT
December 31, 1999
FUND MANAGER
------------
LADENBURG THALMANN FUND MANAGEMENT INC.
590 Madison Avenue
New York, NY 10022
INVESTMENT ADVISER ADMINISTRATOR
------------------ -------------
BOYAR ASSET MANAGEMENT, INC. COUNTRYWIDE FUND SERVICES, INC.
35 East 21st Street 312 Walnut Street
New York, NY 10010 P.O. Box 5354
1.212.995.8300 Cincinnati, OH 45201-5354
1.800.266.5566
================================================================================
<PAGE>
[LOGO]
BOYAR
VALUE FUND
----------
1/27/00
Dear Shareholder:
A LOOK BACK AT 1999
- -------------------
o In my Shareholder Letter dated February 22, 1999 I pointed out that
investors would be wise to reduce their expectations when it comes to the
returns they might be anticipating from the stock market during the next
few years. I continued by saying that "the 20% returns captured by the
leading stock market indices during the past four years were clearly
unsustainable." ... Well it only took 10 months to be proven wrong. All of
the leading indices advanced by at least 20%, with the NASDAQ sprinting
ahead by a spectacular 85%, a record increase for a stock market index
during a one-year period.
o These advances, however, were not as democratic as they appear. For
example, technology stocks now comprise 30% of the S&P 500 weighting ...
back out the increase in the S&P 500 Technology sector and the S&P 500
would have returned money market rates during 1999. Approximately 50% of
the stocks that form the S&P 500 Index were down for the year. Furthermore,
although the NASDAQ Index advanced 85% during 1999, nearly half of all
NASDAQ stocks actually fell in price last year.
o In addition, within the technology area, Internet stocks were clearly the
stellar performers, accounting for a significant portion of that sector's
gain. In our opinion, the stock market has valued the vast majority of
Internet related businesses at levels that have discounted almost
everything, including the hereafter. Our hunch is that at some point in
time a great many individuals that have invested in this sector will lose a
large amount of money.
o The increase in stock market speculation during 1999 also became more
apparent and troublesome for us. Margin debt was up 46.3% year over year,
and advanced $21 billion or 13.2% during the month of November. The
supercharged NASDAQ is turning over its shares at more than three times the
pace of any major industrialized market in the world. The trading in its
shares amounted to more than twice its entire share base; the turnover was
88 percent in 1990.
o While the data does not address different industries, some of the NASDAQ
stocks most popular with online investors trade furiously. The entire share
base of double-click, which specializes in Internet advertising, turned
over 21 times last year. Investors traded shares equal to 16 times those
available in CMGI, an incubator for Internet companies, and more than 13
times the shares of Amazon, the online retailer. In the 50 NASDAQ stocks
with the heaviest trading, investors held their shares for just three
weeks, on average.
A LOOK AHEAD
- ------------
o Since 1957 the Standard & Poor's 500 has risen nine times out of ten during
the fourth year of the four-year presidential cycle, through 1996, with an
average return of 10.7%.
o Since 2000 is a presidential election year whatever rate hikes the Fed has
in mind will most probably occur in the early part of the year. George Bush
still partially blames the Federal Reserve's failure to ease monetary
policy early enough for his defeat in the last presidential election.
o Assuming our suspicion is correct and interest rates do stabilize we
believe financial stocks could be a very rewarding sector during the year
2000. Remember, financial service stocks had quite a flurry when lawmakers
agreed to overhaul the financial system, repealing Depression-Era laws that
have restricted the banking,
<PAGE>
o securities and insurance industries from expanding into one another's
business. Since then higher interest rates have derailed the move.
o It is our belief that what worked well in the U.S. stock market during 1999
will disappoint in 2000. Stock picking will be of paramount importance, as
the leading U.S. stock market indices play second fiddle to the average
stock, something that has not occurred for a number of years.
FUND'S PERFORMANCE
- ------------------
o For the calendar year ended December 31, 1999 the Boyar Value Fund returned
14.24%. The fund's return on equity (return on stocks, exclusive of cash)
was 20.3%. Listed below are the comparative results for calendar 1999:
CALENDAR 1999 COMPARATIVE RESULTS
---------------------------------
RUSSELL RUSSELL MIDCAP RUSSELL 2000
BOYAR VALUE FUND 2000 INDEX VALUE VALUE INDEX
---------------- ---------- ----- -----------
+14.24% +21.26% -0.11% -1.49%
o The Fund continues its endeavor to be a tax efficient fund. During 1999 the
Fund did not realize any securities gains. Consequently, no taxes were
incurred, and our after tax return was precisely the same as our pre-tax
return or 14.24%.
o A number of factors negatively impacted the Fund's performance last year.
LARGE CASH POSITION
- -------------------
o A substantial amount of new money (relative to the size of the Fund) was
invested in Boyar Value Fund last year. Fund inflows approximated $1.3
million. Since it takes a fair amount of time to invest the cash, the
Fund's large cash position was only able to return money market rates,
which negatively impacted the Fund's overall performance.
o During 1999 value investing played second fiddle to growth investing.
Technology stocks were in vogue throughout the year, and within that sector
Internet stocks were the rage. Boyar Value Fund had no investments in that
sector.
BOYAR VALUE FUND'S PHILOSOPHY AND GOALS:
- ----------------------------------------
o The Boyar Value fund tends to buy the common shares of publicly traded
businesses that are selling in the market place at significant discounts to
our estimate of their intrinsic or private market value.
o Furthermore, a substantial number of the businesses that we invest in are
either not widely followed by the majority of Wall Street brokerage houses
or may have plummeted in value because they failed to meet analysts
earnings expectations.
o Purchasing out of favor companies may inhibit short-term performance, since
it may take some time for these companies to right themselves. On the other
hand it does create a "margin of safety," since most of these companies
have plummeted in value by such a margin that most of the downside risk has
been eliminated.
o Over an investment time horizon of three to five years, these undervalued
corporations often will be re-evaluated upward by the stock market or the
assets of the businesses may be acquired by a third party.
o By utilizing this long-term "Buy and Hold" strategy it allows capital to
compound without the return-eroding effect of commissions and capital gains
taxes. Such an orientation may sound stodgy, but we firmly believe this
approach is as important to investment success as picking the right stocks
at the right price and at the right time.
<PAGE>
o Since Boyar Value Fund will buy equity positions in businesses regardless
of their market capitalization it will be very difficult to compare its
performance to a particular index. Our goal is to return to investors over
a complete market cycle an absolute rate of return that is superior to the
stock market's total return over the past 60 years which approximates
10.65%.
If you have any questions do not hesitate to call (212)-995-8300.
Very truly yours,
/s/ Mark A. Boyar
Mark A. Boyar
Chief Investment Officer
<PAGE>
Comparison of the Change in Value of a $10,000 Investment in the
Boyar Value Fund, Inc., the Russell 2000 Index, the Russell 2000
Value Index and the Russell Midcap Value Index
12/99
-----
Boyar Value Fund, Inc. $11,143
Russell 2000 Index $10,702
Russell 2000 Value Index $ 8,463
Russell Midcap Value Index $ 9,586
------------------------
Boyar Value Fund, Inc.
Average Annual Total Return
1 Year Since Inception*
14.24% 6.73%
------------------------
*Commencement of operations was May 5, 1998.
Past performance is not predictive of future performance.
<PAGE>
BOYAR VALUE FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1999
ASSETS
Investment securities:
At acquisition cost $ 3,670,966
============
At market value (Note 1) $ 4,030,655
Interest receivable 3,749
Dividends receivable 2,588
Receivable for capital shares sold 18,000
Receivable from Adviser (Note 3) 20,899
Organization expenses, net (Note 1) 59,268
Other assets 9,781
------------
TOTAL ASSETS 4,144,940
------------
LIABILITIES
Payable to affiliates (Note 3) 4,200
Other accrued expenses and liabilities 6,096
------------
TOTAL LIABILITIES 10,296
------------
NET ASSETS $ 4,134,644
============
NET ASSETS CONSIST OF:
Paid-in capital $ 3,800,682
Distributions in excess of net investment income (149)
Accumulated net realized losses from security transactions (25,578)
Net unrealized appreciation on investments 359,689
------------
NET ASSETS $ 4,134,644
============
Shares of beneficial interest outstanding
(1,000,000,000 shares authorized, $0.001 par value) 372,838
============
Net asset value, offering price, and
redemption price per share (Note 1) $ 11.09
============
See accompanying notes to financial statements.
<PAGE>
BOYAR VALUE FUND, INC.
STATEMENT OF OPERATIONS
For the Year Ended December 31, 1999
INVESTMENT INCOME
Dividends $ 21,550
Interest 42,318
---------
63,868
---------
EXPENSES
Accounting services fees (Note 3) 24,000
Directors' fees and expenses 18,000
Amortization of organization expenses (Note 1) 17,781
Investment advisory fees (Note 3) 16,781
Management fees (Note 3) 16,780
Insurance expense 16,200
Transfer agent fees (Note 3) 14,400
Administrative services fees (Note 3) 12,000
Custodian fees 8,639
Professional fees 8,385
Distribution expenses (Note 3) 8,360
Registration fees 5,304
Shareholder report costs 4,849
Postage and supplies 4,274
Other expenses 687
---------
TOTAL EXPENSES 176,440
Fees waived and expenses reimbursed (Note 3) (117,708)
---------
NET EXPENSES 58,732
---------
NET INVESTMENT INCOME 5,136
---------
REALIZED AND UNREALIZED GAINS/LOSSES ON INVESTMENTS
Net realized losses from security transactions (25,578)
Net change in unrealized appreciation on investments 372,929
---------
NET REALIZED AND UNREALIZED GAINS ON INVESTMENTS 347,351
---------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 352,487
=========
See accompanying notes to financial statements.
<PAGE>
BOYAR VALUE FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the Year For the Period
Ended Ended
December 31, December 31,
1999 1998 (a)
----------- -----------
FROM OPERATIONS
<S> <C> <C>
Net investment income $ 5,136 $ 4,938
Net realized gains/(losses) from security transactions (25,578) --
Net change in unrealized appreciation/(depreciation) on investments 372,929 (13,240)
----------- -----------
Net increase/(decrease) in net assets from operations 352,487 (8,302)
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income (5,136) --
In excess of net investment income (149) (4,938)
----------- -----------
Total distributions (5,285) (4,938)
----------- -----------
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold 2,466,134 1,324,959
Net asset value of shares issued in
reinvestment of distributions to shareholders 5,072 4,409
Payments for shares redeemed (99,591) (301)
----------- -----------
Net increase in net assets from capital share transactions 2,371,615 1,329,067
----------- -----------
TOTAL INCREASE IN NET ASSETS 2,718,817 1,315,827
NET ASSETS
Beginning of period (Note 1) 1,415,827 100,000
----------- -----------
End of period $ 4,134,644 $ 1,415,827
=========== ===========
CAPITAL SHARE ACTIVITY
Sold 236,006 135,214
Reinvested 464 453
Redeemed (9,266) (33)
----------- -----------
Net increase in shares outstanding 227,204 135,634
Shares outstanding, beginning of period (Note 1) 145,634 10,000
----------- -----------
Shares outstanding, end of period 372,838 145,634
=========== ===========
</TABLE>
(a) Represents the period from the commencement of operations (May 5, 1998)
through December 31, 1998.
See accompanying notes to financial statements.
<PAGE>
BOYAR VALUE FUND, INC.
FINANCIAL HIGHLIGHTS
Selected Per Share Data and Ratios for a Share
Outstanding Throughout Each Period
<TABLE>
<CAPTION>
For the Year For the Period
Ended Ended
December 31, December 31,
1999 1998 (a)
------------ ------------
<S> <C> <C>
Net asset value at beginning of period $ 9.72 $ 10.00
------------ ------------
Income/(loss) from investment operations:
Net investment income 0.01 0.03
Net realized and unrealized gains/(losses) on investments 1.37 (0.28)
------------ ------------
Total income/(loss) from investment operations 1.38 (0.25)
------------ ------------
Less distributions:
From net investment income (0.01) (0.03)
------------ ------------
Net asset value at end of period $ 11.09 $ 9.72
============ ============
Total return 14.24% (2.46%)
============ ============
Net assets at end of period $ 4,134,644 $ 1,415,827
============ ============
Ratio of net expenses to average net assets (b) 1.75% 1.75% (c)
Ratio of net investment income to average net assets 0.15% 0.66% (c)
Portfolio turnover rate 8% 0%
</TABLE>
(a) Represents the period from the commencement of operations (May 5, 1998)
through December 31, 1998.
(b) Absent fees waived and expenses reimbursed, the ratio of expenses to
average net assets would have been 5.28% (c) and 13.19% (c) for the periods
ended December 31, 1999 and December 31, 1998, respectively (Note 3).
(c) Annualized.
See accompanying notes to financial statements.
<PAGE>
BOYAR VALUE FUND, INC.
PORTFOLIO OF INVESTMENTS
December 31, 1999
Market
Shares Value
------ -----
COMMON STOCKS - 73.8%
CONSUMER, CYCLICAL - 40.4%
1,800 CBS Corp. $ 115,087
3,060 Chris-Craft Industries, Inc. (a) 220,702
4,000 Dun & Bradstreet Corp. 118,000
15,000 Hanover Direct, Inc. 54,375
5,600 Hilton Hotels Corp. 53,900
200 IMS Health, Inc. 5,438
8,000 Mattel, Inc. 105,000
1,500 Meredith Corp. 62,531
2,100 Midas, Inc. 45,937
6,000 Mirage Resorts, Inc. (a) 91,875
4,000 Neiman Marcus Group, Inc. (The) 111,750
6,500 Olsten Corp. 73,531
1,300 Park Place Entertainment Corp. (a) 16,250
18,000 Pier 1 Imports, Inc. 114,750
2,400 Playboy Enterprises, Inc. - Class B (a) 58,350
1,100 Reader's Digest Association, Inc. (The) - Class A 32,175
17,100 Spiegel, Inc. (a) 120,234
2,000 Walt Disney Co. (The) 58,500
2,000 Time Warner, Inc. 144,875
4,600 Toys "R" Us, Inc. (a) 65,838
----------
1,669,098
----------
CONSUMER, NON-CYCLICAL - 8.5%
3,000 Avon Products, Inc 99,000
4,800 Cross (A.T.) Co. - Class A 21,600
3,000 Seagram Company Ltd. (The) 134,812
2,000 Tupperware Corp. 33,875
4,600 Whitman Corp. 61,813
----------
351,100
----------
FINANCIAL SERVICES - 19.2%
2,000 Bank One Corp. 64,125
500 Chase Manhattan Corp. (The) 38,844
3,450 Citigroup, Inc. 191,691
5,800 CoVest Bancshares, Inc. 77,213
1,900 Dow Jones & Company, Inc. 129,200
3,500 Lehman Brothers Holdings, Inc. 296,406
----------
797,479
----------
INDUSTRIAL - 2.3%
4,000 Diebold, Inc. 94,000
----------
<PAGE>
BOYAR VALUE FUND, INC.
PORTFOLIO OF INVESTMENTS
December 31, 1999
Market
Shares Value
------ -----
COMMON STOCKS - 73.8% (CONTINUED)
TECHNOLOGY - 3.4%
2,000 Boeing Co. (The) $ 83,125
2,500 Xerox Corp. 56,719
----------
139,844
----------
TOTAL COMMON STOCKS (Cost $2,691,832) $3,051,521
----------
MONEY MARKET FUND - 23.7%
979,134 Firstar Stellar Treasury Fund (Cost $979,134) $ 979,134
----------
TOTAL INVESTMENT SECURITIES - 97.5% (Cost $3,670,966) $4,030,655
OTHER ASSETS IN EXCESS OF LIABILITIES - 2.5% 103,989
----------
NET ASSETS - 100.0% $4,134,644
==========
(a) Non-income producing security.
See accompanying notes to financial statements.
<PAGE>
BOYAR VALUE FUND, INC.
NOTES TO FINANCIAL STATEMENTS
December 31, 1999
1. SIGNIFICANT ACCOUNTING POLICIES
Boyar Value Fund, Inc. (the Fund), is registered as a no-load, open-end,
diversified management investment company under the Investment Company Act of
1940 (the 1940 Act), and was incorporated on February 28, 1997 under the laws of
the State of Maryland. The Fund was capitalized on November 19, 1997, when the
initial 10,000 shares of the Fund were purchased at $10.00 per share. Except for
the initial purchase of shares, the Fund had no operations prior to the
commencement of operations on May 5, 1998.
The Fund seeks to provide long-term capital appreciation through investment in
equity securities which are believed by the Adviser to be intrinsically
undervalued.
The following is a summary of the Fund's significant accounting policies:
Securities valuation -- The Fund's portfolio securities are valued as of the
close of business of the regular session of the New York Stock Exchange
(normally 4:00 p.m., Eastern Time). Securities traded on a national stock
exchange or quoted by NASDAQ are valued at their closing sales price on the
principal exchange where the security is traded or, if not traded on a
particular day, at their closing bid price. Securities for which market
quotations are not readily available are valued at their fair value as
determined in good faith in accordance with consistently applied procedures
established by and under the general supervision of the Board of Directors.
Share valuation -- The net asset value per share of the Fund is calculated daily
by dividing the total value of the Fund's assets, less liabilities, by the
number of shares outstanding. The offering price and redemption price per share
of the Fund is equal to the net asset value per share.
Investment income and distributions to shareholders -- Interest income is
accrued as earned. Dividend income is recorded on the ex-dividend date.
Dividends arising from net investment income are declared and paid annually. Net
realized short-term capital gains, if any, may be distributed throughout the
year and net realized long-term capital gains, if any, are distributed at least
once each year. Income dividends and capital gain distributions are determined
in accordance with income tax regulations.
Organization expenses -- Expenses of organization have been capitalized and are
being amortized on a straight-line basis over five years.
Security transactions -- Security transactions are accounted for on trade date.
Securities sold are determined on a specific identification basis.
<PAGE>
BOYAR VALUE FUND, INC.
NOTES TO FINANCIAL STATEMENTS
December 31, 1999
Estimates -- The preparation of financial statements in conformity with
generally accepted accounting principles 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 during the reporting period. Actual results could differ from those
estimates.
Federal income tax -- It is the Fund's policy to comply with the special
provisions of the Internal Revenue Code applicable to regulated investment
companies. As provided therein, in any fiscal year in which a Fund so qualifies
and distributes at least 90% of its taxable net income, the Fund (but not the
shareholders) will be relieved of federal income tax on the income distributed.
Accordingly, no provision for income taxes has been made.
In order to avoid imposition of the excise tax applicable to regulated
investment companies, it is also the Fund's intention to declare as dividends in
each calendar year at least 98% of its net investment income (earned during the
calendar year) and 98% of its net realized capital gains (earned during the
twelve months ended October 31) plus undistributed amounts from prior years.
As of December 31, 1999, based upon a federal income tax cost of portfolio
investments of $3,670,966, the Fund had net unrealized appreciation of $359,689,
consisting of $583,366 of gross unrealized appreciation and $223,677 of gross
unrealized depreciation.
As of December 31, 1999 the Boyar Value Fund had a capital loss carryforward for
federal income tax purposes of $25,578, which expires on December 31, 2007.
2. INVESTMENT TRANSACTIONS
For the period ended December 31, 1999, cost of purchases and proceeds from
sales of portfolio securities, other than short-term investments, amounted to
$1,879,338 and $185,420, respectively.
3. TRANSACTIONS WITH AFFILIATES
The business activities of the Fund are supervised under the direction of the
Board of Directors, which is responsible for the overall management of the Fund.
Ladenburg Thalmann Fund Management Inc. (the Manager) is responsible for
managing the daily business operations of the Fund. Boyar Asset Management, Inc.
(the Adviser) provides continuous advisory services to the Fund and Ladenburg
Thalmann & Co. Inc. (LTCI) acts as distributor of the Fund's shares. The Fund
has employed Countrywide Fund Services, Inc. (CFS) to provide administration,
accounting and transfer agent services. Certain Directors and Officers of the
Fund are also Officers of the Manager, the Adviser, LTCI or CFS.
<PAGE>
BOYAR VALUE FUND, INC.
NOTES TO FINANCIAL STATEMENTS
December 31, 1999
MANAGEMENT AGREEMENT AND INVESTMENT ADVISORY AGREEMENT
Pursuant to a Management Agreement with the Fund, the Manager, under the
supervision of the Board of Directors, oversees the daily operations of the Fund
and supervises the performance of administrative and professional services
provided by others, including the Adviser. As compensation for its services and
the related expenses borne by the Manager, the Fund pays the Manager a
management fee, computed and accrued daily and paid monthly, at an annual rate
of 0.50% of its average daily net assets.
Pursuant to an Investment Advisory Agreement with the Manager, the Adviser and
the Fund, the Adviser agrees to furnish continuous investment advisory services
to the Fund. For these services, the Fund pays the Adviser an investment
advisory fee, which is computed and accrued daily and paid monthly, at an annual
rate of 0.50% of its average daily net assets.
The Manager currently intends to waive its management fees and reimburse other
operating expenses of the Fund, and the Adviser currently intends to waive its
investment advisory fees, to the extent necessary to limit the total operating
expenses of the Fund to 1.75% of average daily net assets. In accordance with
the above limitation, the Manager voluntarily waived its management fees of
$16,780 and reimbursed the Fund for $84,147 of other operating expenses, and the
Adviser voluntarily waived its investment advisory fees of $16,781 for the
period ended December 31, 1999.
ADMINISTRATION AGREEMENT
Under the terms of an Administration Agreement between the Fund and CFS, CFS
supplies non-investment related statistical and research data, internal
regulatory compliance services and executive and administrative services for the
Fund. CFS supervises the preparation of tax returns, reports to shareholders of
the Fund, reports to and filings with the Securities and Exchange Commission and
state securities commissions, and materials for meetings of the Board of
Directors. For these services, CFS receives a monthly fee at an annual rate of
0.15% of the Fund's average daily net assets up to $50 million; 0.125% of such
assets from $50 million to $100 million; and 0.10% of such assets in excess of
$100 million, subject to a monthly minimum fee of $1,000.
TRANSFER AGENT AGREEMENT
Under the terms of a Transfer Agent, Dividend Disbursing, Shareholder Service
and Plan Agency Agreement between the Fund and CFS, CFS maintains the records of
each shareholder's account, answers shareholders' inquiries concerning their
accounts, processes purchases and redemptions of the Fund's shares, acts as
dividend and distribution disbursing agent and performs other shareholder
service functions. For these services, CFS receives a monthly fee at an annual
rate of $18 per shareholder account, subject to a monthly minimum fee of $1,200.
In addition, the Fund pays CFS out-of-pocket expenses including, but not limited
to, postage and supplies.
<PAGE>
BOYAR VALUE FUND, INC.
NOTES TO FINANCIAL STATEMENTS
December 31, 1999
ACCOUNTING SERVICES AGREEMENT
Under the terms of an Accounting Services Agreement between the Fund and CFS,
CFS calculates the daily net asset value per share and maintains the financial
books and records of the Fund. For these services, CFS receives a monthly fee,
based on current net assets, of $2,000 from the Fund. In addition, the Fund pays
CFS certain out-of-pocket expenses incurred by CFS in obtaining valuations of
the Fund's portfolio securities.
SHAREHOLDER SERVICING AND DISTRIBUTION PLAN
The Fund has adopted a Shareholder Servicing and Distribution Plan (the Plan)
pursuant to Rule 12b-1 under the 1940 Act. The Plan provides that a monthly
service fee is calculated by the Fund at an annual rate of 0.25% of its average
daily net assets and is paid to LTCI, as distributor, to provide compensation
for ongoing services and/or maintenance of the Fund's shareholder accounts, not
otherwise required to be provided by the Adviser or CFS. For the year ended
December 31, 1999, the Fund incurred and subsequently waived $8,360 of
distribution expenses under the Plan.
<PAGE>
Report of Independent Auditors
To the Shareholders and Board of Directors of
Boyar Value Fund, Inc.
We have audited the accompanying statement of assets and liabilities, including
the portfolio of investments, of Boyar Value Fund, Inc. as of December 31, 1999,
the related statement of operations for the year then ended, and the statement
of changes in net assets and the financial highlights for the year ended
December 31, 1999 and for the period from May 5, 1998 to December 31, 1998.
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 auditing standards generally accepted
in the United States. 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, 1999, by correspondence with the custodian. 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 Boyar
Value Fund, Inc. as of December 31, 1999, the results of its operations for the
year then ended, and the changes in its net assets and the financial highlights
for each of the periods indicated therein, in conformity with accounting
principles generally accepted in the United States.
/s/ Ernst & Young LLP
Cincinnati, Ohio
January 27, 2000
