[LOGO]
Shareholder Accounts Corporate Offices
c/o Countrywide Fund 3707 W. Maple Road
Services, Inc. Bloomfield Hills, MI 48301
P.O. Box 5354 (248) 644-8500
Cincinnati, OH 45201-5354 Fax (248) 644-4250
1-800-543-0407
Schwartz Value Fund
Dear Fellow Shareowner:
Last year at this time, mergers and acquisitions were favorably impacting
Schwartz Value Fund. Several of our small-cap companies were being acquired at
substantial premiums. So far this year, however, the action has shifted to large
companies, in terms of M&A activity as well as general investor interest.
Indeed, small and micro-cap value issues are again unloved and ignored.
Consequently, for the first six months of 1998, Schwartz Value Fund was up 1.3%
versus 4.7% for the Russell 2000. Reflective of the investor enthusiasm for
large-caps, especially technology issues, the NASDAQ Composite Index was up
20.7% during the same period, even though almost half the stocks in the Index
were down more than 30% from their highs, as of June 30, 1998. This bull market
has become increasingly concentrated and narrow. Market technicians call it bad
breadth.
On July 17, 1995, the Nasdaq index reached 1,000 for the first time. By
July 17, 1998, exactly three years later, it had doubled to 2,000. But only five
stocks -- Microsoft, Dell, Intel, Cisco Systems and WorldCom accounted for 66%
of the advance. Similarly, the S&P 500 was up 17.7% in the first half of 1998.
But the 50 largest issues were up over 30% while the remaining 450 were up less
than 10%. This apparent anomaly is possible because the indices are
capitalization-weighted. The biggest stocks dominate the performance of the
average. Index Funds and the large-cap mutual funds, chasing past performance,
have created a virtuous and self-fulfilling cycle of higher stock prices. (This
may now be in the process of unwinding.) In the S&P 500, the 50 largest
companies are selling at P-Es equal to three times their growth rates; they are
clearly fully priced or over-priced. Contrariwise, small-caps are selling at
P-Es on average of only 1-1/2 times their growth rates. The value is clearly in
the neglected small-capitalization companies.
The risk is in the big ones.
Obviously, there has been a massive divergence between the price
performance of a handful of very large companies and that of most stocks. A
friend asked me last week, "Why should I invest in Schwartz Value Fund when the
large stocks in recent years have outperformed small ones by such a large
margin?" The answer is precisely that! The over-performance of a few big stocks
has so stretched valuations that their future under-performance is almost
assured. One good reason to own Schwartz Value Fund, or buy more at this
juncture, is that the past is not prologue. The divergence is not likely to
continue. History is on our side. Incidentally, in 10 of the past 14 years, the
Russell 2000 was up less than 22%. In 8 of those 10 years, Schwartz Value Fund
beat the Russell 2000. In other words, Schwartz Value Fund usually beats its
benchmark, except when the market is streaking skyward (up more than 22%).
Therefore, if you believe the market will be up more than 22% per year, in the
future -- don't invest in Schwartz Value Fund. If however, you believe that in
most years the market will produce more moderate results, closer to its
historical average, then you ought to be in Schwartz Value Fund. It should
continue to provide very good risk-adjusted returns.
This diatribe is not a forecast of an impending market collapse for
large-cap issues, but merely an application of our valuation discipline. Bear
markets are inevitable but their timing cannot be predicted, since they are
caused by unpredictable events. But individual stock performances over the long
term will match closely the underlying progress of those businesses. That's why
I remain confident that our research-driven, bottom-up approach to stock
selection will again bear fruit, even though the recent results have been
disappointing. The basic value investment approach still represents a safe path
to sustained capital appreciation.
Your continued support is sincerely appreciated.
SCHWARTZ VALUE FUND
/s/ George P. Schwartz
George P. Schwartz, CFA
President
July 31, 1998
<PAGE>
SCHWARTZ VALUE FUND
SCHEDULE OF INVESTMENTS
June 30, 1998 (Unaudited)
================================================================================
Shares COMMON STOCK -- 87.9% Value
- --------------------------------------------------------------------------------
APPAREL & TEXTILES -- 4.5%
89,600 Charming Shoppes, Inc.* ...................... $ 425,600
125,000 K-Swiss Inc. -- Class A ...................... 2,453,125
15,000 Nautica Enterprises, Inc.* ................... 402,187
------------
3,280,912
------------
BUILDING MATERIALS & CONSTRUCTION -- 3.2%
20,000 ABT Building Products Corporation* ........... 343,750
50,000 Gardner Denver, Inc.* ........................ 1,381,250
24,000 Industrial Acoustics Company, Inc. ........... 253,500
40,000 Schuler Homes, Inc.* ......................... 350,000
------------
2,328,500
------------
CONSUMER PRODUCTS -- DURABLES -- 6.4%
35,000 Craftmade International, Inc. ................ 612,500
250,000 Griffon Corporation* ......................... 3,203,125
70,000 HMI Industries Inc. .......................... 253,750
40,000 Sturm, Ruger & Company, Inc. ................. 670,000
------------
4,739,375
------------
CONSUMER PRODUCTS -- NONDURABLES -- 7.9%
25,000 Helen of Troy Limited* ....................... 550,000
418,000 Pentech International, Inc.* ................. 574,750
20,000 Standex International Corporation ............ 592,500
75,000 Tupperware Corp. ............................. 2,109,375
10,000 Velcro Industries N.V ........................ 1,392,500
24,200 Weyco Group, Inc. ............................ 632,225
------------
5,851,350
------------
ENERGY & MINING -- 5.1%
70,000 Forest Oil Corporation* ...................... 1,001,875
200,000 Golden Star Resources, Ltd.* ................. 425,000
165,000 Inco, Ltd. -- Class VBN ...................... 1,185,938
35,000 Newmont Mining Corp. ......................... 826,875
35,000 Patterson Energy, Inc.* ...................... 342,344
------------
3,782,032
------------
2
<PAGE>
SCHEDULE OF INVESTMENTS (continued)
================================================================================
Shares COMMON STOCK -- 87.9% Value
- --------------------------------------------------------------------------------
ENVIRONMENTAL SERVICES -- 0.9%
12,400 GZA GeoEnvironmental Technologies, Inc.* ..... $ 61,225
73,800 Sevenson Environmental Services, Inc. ........ 618,075
------------
679,300
------------
FINANCE -- BANKING & THRIFTS -- 6.8%
15,000 Flagstar Bancorp, Inc. ....................... 365,625
150,000 Ottawa Financial Corporation ................. 4,331,250
12,150 Peoples Bancorp .............................. 276,412
------------
4,973,287
------------
FINANCE -- INSURANCE -- 11.8%
35,000 The Commerce Group, Inc. ..................... 1,356,250
100,000 Danielson Holding Corp.* ..................... 737,500
75,000 Leucadia National Corporation ................ 2,479,687
5,000 Loews Corp. .................................. 435,625
50,000 MMI Companies, Inc. .......................... 1,156,250
165,000 Unico American Corporation ................... 2,495,625
------------
8,660,937
------------
FOOD & TABACCO -- 2.7%
85,000 RJR Nabisco Holdings Corp. ................... 2,018,750
------------
HEALTHCARE -- 3.4%
80,000 America Service Group, Inc.* ................. 980,000
15,000 Health Care & Retirement Corporation* ........ 591,562
50,000 Hologic, Inc.* ............................... 909,375
------------
2,480,937
------------
HOLDING COMPANY -- 2.3%
30,000 Maxxam Inc.* ................................. 1,702,500
------------
INDUSTRIAL PRODUCTS & SERVICES -- 4.3%
30,000 Greif Brothers Corporation -- Class A ........ 1,121,250
50,000 Maritrans Inc. ............................... 453,125
10,055 M.H. Rhodes, Inc.* ........................... 143,284
30,000 Perceptron, Inc.* ............................ 360,000
3
<PAGE>
SCHEDULE OF INVESTMENTS (continued)
================================================================================
Shares COMMON STOCK -- 87.9% Value
- --------------------------------------------------------------------------------
50,000 Rohn Industries, Inc. ........................ $ 234,375
25,000 United Dominion Industries, Ltd. ............. 834,375
------------
3,146,409
------------
PRINTING & PUBLISHING -- 4.1%
465 The Detroit Legal News Company* .............. 63,240
200,000 Thomas Nelson, Inc. .......................... 2,675,000
7,200 Value Line, Inc. ............................. 275,400
------------
3,013,640
------------
REAL ESTATE -- 0.5%
16,499 I. Gordon Corporation* ....................... 148,491
15 LaFourche Realty Company, Inc. ............... 78,000
10,000 Malan Realty Investors, Inc. ................. 176,875
------------
403,366
------------
RETAIL -- 1.0%
100,000 Ellett Brothers, Inc. ........................ 475,000
20,000 The Good Guys, Inc.* ......................... 269,375
------------
744,375
------------
TECHNOLOGY & ELECTRONICS -- 17.1%
33,500 Astrosystems, Inc.* .......................... 78,516
238,200 Data Research Associates, Inc. ............... 4,525,800
100,000 Nematron Corporation* ........................ 550,000
90,000 Rainbow Technologies, Inc.* .................. 1,845,000
142,300 SPSS Inc.* ................................... 3,308,475
35,000 Transition Systems, Inc.* .................... 371,875
60,000 Universal Electronics, Inc.* ................. 750,000
85,000 X-Rite, Incorporated ......................... 1,163,438
------------
12,593,104
------------
TRANSPORTATION -- 0.8%
58,800 The Morgan Group, Inc. ....................... 588,000
------------
MISCELLANEOUS -- 0.1%
12,500 Bull & Bear Group, Inc. -- Class A* .......... 28,125
------------
4
<PAGE>
SCHEDULE OF INVESTMENTS (continued)
================================================================================
Shares COMMON STOCK -- 87.9% Value
- --------------------------------------------------------------------------------
CLOSED-END FUNDS -- 5.0%
256,400 Royce Global Trust, Inc. ..................... $ 1,410,200
38,700 Royce Micro-Cap Trust, Inc.* ................. 399,094
60,000 Scudder New Europe Fund, Inc. ................ 1,260,000
75,000 Templeton Dragon Fund ........................ 628,125
------------
3,697,419
------------
TOTAL COMMON STOCK (COST $51,979,126) 64,712,318
------------
PREFERRED STOCK -- 0.2% (COST $132,739)
35,000 Telos Corporation, 12% Cumulative
Exchangable Preferred* 166,250
------------
U.S. GOVERNMENT & AGENCY BONDS -- 8.6%
$2,000,000 Federal National Mortgage Association,
5.87%, 9/25/98 2,002,862
$2,000,000 Federal National Mortgage Association, 0%, 11/6/98 1,961,244
$2,500,000 Federal Farm Credit Bank Discount Note, 5/21/99 2,378,500
------------
TOTAL U.S. GOVERNMENT & AGENCY BONDS
(COST $6,262,322) 6,342,606
------------
CORPORATE BONDS -- 1.4% (COST $1,052,500)
Whittaker Corp., 7.00%, 5/1/05 1,050,000
------------
REPURCHASE AGREEMENTS (1) -- 2.4% (COST $1,767,000)
$1,767,000 Fifth Third Bank, 5.15%, dated 6/30/98, due
07/01/98 repurchase proceeds: ($1,767,253) 1,767,000
------------
TOTAL INVESTMENTS -- 100.5% (COST $61,193,687) 74,038,174
------------
LIABILITIES IN EXCESS OF OTHER ASSETS -- (0.5)% (458,777)
------------
NET ASSETS -- 100.0% $ 73,579,397
============
* Non-income producing securities.
(1) Repurchase agreements are fully collateralized by U.S. Government
obligations.
See notes to financial statements.
5
<PAGE>
SCHWARTZ VALUE FUND
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1998 (Unaudited)
================================================================================
ASSETS
Investments, at market value (cost of $61,193,687) (Note 1) ... $ 74,038,174
Cash .......................................................... 3,899
Dividends receivable .......................................... 72,802
Interest receivable ........................................... 43,226
Other assets .................................................. 19,157
------------
TOTAL ASSETS .............................................. 74,177,258
------------
LIABILITIES
Payable for capital shares redeemed ........................... 26,741
Payable for securities purchased .............................. 286,554
Accrued investment advisory fees (Note 2) ..................... 281,090
Other accrued expenses and liabilities ........................ 3,476
------------
TOTAL LIABILITIES ......................................... 597,861
------------
NET ASSETS .................................................... $ 73,579,397
============
NET ASSETS CONSIST OF:
Paid-in capital ............................................... $ 56,247,698
Accumulated net realized gains from security
transactions ................................................ 4,639,243
Undistributed net investment loss ............................. (152,031)
Net unrealized appreciation on investments .................... 12,844,487
------------
NET ASSETS .................................................... $ 73,579,397
============
Shares of beneficial interest outstanding (unlimited
number of shares authorized, no par value) .................. 3,028,550
============
Net asset value, redemption price, and offering price
per share ................................................... $ 24.30
============
See notes to financial statements.
6
<PAGE>
SCHWARTZ VALUE FUND
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 1998 (Unaudited)
================================================================================
INVESTMENT INCOME
Dividends .................................................. $ 301,930
Interest ................................................... 222,082
-----------
TOTAL INVESTMENT INCOME .................................. 524,012
===========
EXPENSES
Investment advisory fees (Note 2) .......................... 543,863
Administration, accounting and transfer agent fees
(Note 2) ................................................. 75,597
Trustees' fees and expenses ................................ 31,660
Legal and audit fees ....................................... 11,894
Insurance expense .......................................... 9,088
Other expenses ............................................. 3,941
-----------
TOTAL EXPENSES ........................................... 676,043
-----------
NET INVESTMENT LOSS .......................................... (152,031)
-----------
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on investments .......................... 4,776,216
Net change in unrealized appreciation on
investments .............................................. (3,861,794)
-----------
NET REALIZED AND UNREALIZED GAINS ON INVESTMENTS ............. 914,422
-----------
NET INCREASE IN NET ASSETS FROM OPERATIONS ................... $ 762,391
===========
See notes to financial statements.
7
<PAGE>
SCHWARTZ VALUE FUND
STATEMENTS OF CHANGES IN NET ASSETS
For the Periods Ended June 30, 1998 and December 31, 1997
================================================================================
<TABLE>
<CAPTION>
Six Months Ended Year Ended
June 30, 1998 December 31,
(Unaudited) 1997
---------------- ------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) ...................... $ (152,031) $ 148,105
Net realized gains on investments ................. 4,776,216 7,830,848
Net change in unrealized appreciation on
investments ..................................... (3,861,794) 7,620,060
------------ ------------
Net increase in net assets from operations .......... 762,391 15,599,013
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income ........................ -- (148,105)
From net realized gains on investments ............ -- (7,879,894)
In excess of net realized gains on investments .... -- (136,973)
------------ ------------
Net decrease in net assets from distributions to
shareholders ...................................... -- (8,164,972)
------------ ------------
FROM CAPITAL SHARE TRANSACTIONS(A):
Proceeds from shares sold ......................... 6,233,879 7,555,701
Reinvestment of distributions to shareholders ..... -- 7,588,008
Payments for shares redeemed ...................... (3,383,433) (7,716,318)
------------ ------------
Net increase in net assets from capital share
transactions ...................................... 2,850,446 7,427,391
------------ ------------
TOTAL INCREASE IN NET ASSETS ........................ 3,612,837 14,861,432
NET ASSETS:
Beginning of period ............................... 69,966,560 55,105,128
------------ ------------
End of period ..................................... $ 73,579,397 $ 69,966,560
============ ============
UNDISTRIBUTED NET INVESTMENT LOSS ................... $ (152,030) $ --
============ ============
(A) SUMMARY OF CAPITAL SHARE ACTIVITY:
Shares sold ...................................... 249,771 324,868
Shares issued in reinvestment of distributions to
shareholders ..................................... -- 316,298
Shares redeemed .................................. (137,211) (326,230)
------------ ------------
Net increase in shares outstanding ............... 112,560 314,936
Shares outstanding, beginning of period .......... 2,915,990 2,601,054
------------ ------------
Shares outstanding, end of period ................ 3,028,550 2,915,990
============ ============
</TABLE>
See notes to financial statements.
8
<PAGE>
SCHWARTZ VALUE FUND
FINANCIAL HIGHLIGHTS
Per Share Data for a Share Outstanding
Throughout Each Period
================================================================================
<TABLE>
<CAPTION>
Six Months Year Year Year Year July 20,(A)
Ended Ended Ended Ended Ended To
June 30, 1998 Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
(Unaudited) 1997 1996 1995 1994 1993
------------- -------- -------- -------- -------- -------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period ..... $ 23.99 $ 21.19 $ 19.66 $ 18.12 $ 20.97 $ 19.71
-------- -------- -------- -------- -------- --------
Income from investment operations:
Net investment income (loss) ............. (0.05) 0.06 (0.02) (0.03) (0.05) (0.06)
Net realized and unrealized gains (losses)
on investments ......................... 0.36 5.88 3.61 3.09 (1.37) 1.95
-------- -------- -------- -------- -------- --------
Total from investment operations ........... 0.31 5.94 3.59 3.06 (1.42) 1.89
-------- -------- -------- -------- -------- --------
Less distributions:
From net investment income ............... -- (0.06) -- -- -- --
From net realized gains on investments ... -- (3.03) (2.06) (1.52) (1.36) (0.63)
In excess of net realized gains on
investments ............................ -- (0.05) -- -- (0.07) --
-------- -------- -------- -------- -------- --------
Total distributions ........................ -- (3.14) (2.06) (1.52) (1.43) (0.63)
-------- -------- -------- -------- -------- --------
Net asset value at end of period ........... $ 24.30 $ 23.99 $ 21.19 $ 19.66 18.12 $ 20.97
======== ======== ======== ======== ======= ========
Total return ............................... 1.3%(B) 28.0% 18.3% 16.9% (6.8)% 9.6%(B)
======== ======== ======== ======== ======= ========
Ratios/Supplementary Data:
Ratio of expenses to average net assets .... 1.86%(C) 1.91% 1.97% 2.00% 2.01% 2.13%(C)
Ratio of net investment income (loss) to
average net assets ....................... (0.42)%(C) 0.24% (0.08)% (0.18)% (0.36)% (0.63)%(C)
Portfolio turnover rate .................... 42 %(C) 47% 50% 70% 78% 65 %(C)
Average commission rate .................... $ 0.0474 $ 0.0468 $ 0.0454 -- -- --
Net assets at end of period (000's) ........ $ 73,579 $ 69,967 $ 55,105 $ 53,137 $ 45,097 $ 40,704
- ----------------
(A) Commencement of operations.
(B) Not annualized.
(C) Annualized.
See notes to financial statements.
</TABLE>
9
<PAGE>
SCHWARTZ VALUE FUND
NOTES TO FINANCIAL STATEMENTS
June 30, 1998 (Unaudited)
================================================================================
1. SIGNIFICANT ACCOUNTING POLICIES
Schwartz Value Fund (the Fund) is a series of Schwartz Investment Trust, a
diversified open-end management investment company established as an Ohio
Business Trust under a Declaration of Trust dated August 31, 1992. The Fund is
registered under the Investment Company Act of 1940 and commenced operations on
July 20, 1993. The Fund determines and makes available for publication the net
asset value of its shares on a daily basis.
The investment objective of the Fund is to seek long-term capital appreciation
through investment primarily in basic value common stocks. This investment in
common stocks, by definition, entails the risk of loss of capital to
shareholders. See the Prospectus for more detailed information regarding the
investment objectives of the Fund.
The following is a summary of significant accounting policies followed by the
Fund.
(a) VALUATION OF INVESTMENTS -- Securities which are traded on stock
exchanges or are quoted by NASDAQ are valued at the last reported sale
price as of the close of business on the day of valuation, or, if not
traded on a particular day, at the average of the highest current
independent bid and lowest current independent offer; securities traded in
the over-the-counter market, not quoted by NASDAQ, are valued at the
average of the highest current independent bid and lowest current
independent offer as of the close of trading on the day of valuation, and;
securities (and other assets) for which market quotations are not readily
available are valued at their fair market value as determined in good faith
pursuant to procedures established by the Board of Trustees. Short-term
securities are valued at amortized cost, which approximates market value.
(b) INCOME TAXES -- It is the Fund's policy to comply with the requirements
of the Internal Revenue Code applicable to regulated investment companies
and to distribute substantially all taxable income to the shareholders.
Therefore, no provision for income taxes is necessary.
The Fund files a tax return annually using tax accounting methods required
under provisions of the Code which may differ from generally accepted
accounting principles (GAAP), the basis on which these financial statements
are prepared. The differences arise primarily from the deferral of certain
losses under Federal income tax regulations. Accordingly, the amount of net
investment income or loss and net realized capital gain or loss reported in
the financial statements may differ from that reported in the Fund's tax
return and, consequently, the character of distributions to shareholders
reported in the financial highlights may differ from that reported to
shareholders for Federal income tax purposes. Distributions which exceed
net realized gains for financial reporting purposes but not for tax
purposes, if any, are shown as distributions in excess of net realized
gains in the accompanying statements.
(c) SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security transactions
are accounted for on the trade date. Dividend income is recorded on the
ex-dividend date. Interest income is recognized on the accrual basis.
Realized gains and losses on security transactions are determined on the
identified cost basis.
10
<PAGE>
(d) DIVIDENDS AND DISTRIBUTIONS -- Dividends from net investment income and
net capital gains, if any, are declared and paid annually in December.
Dividends and distributions to shareholders are recorded on the ex-dividend
date.
(e) REPURCHASE AGREEMENTS -- The Fund may enter into repurchase
agreements(agreements to purchase securities subject to the seller's
agreement to repurchase them at a specified time and price) with
well-established registered securities dealers or banks. Repurchase
agreements are the equivalent of loans by the Fund. With respect to the
Fund's policy to take possession of the underlying securities and, on a
daily basis, mark to market such securities to ensure that the value,
accrued interest, is at least equal to the amount to be repaid to the Fund
under the agreement.
(f) ESTIMATES -- The preparation of financial statements in conformity with
GAAP requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
2. INVESTMENT ADVISORY AGREEMENT AND TRANSACTIONS WITH RELATED PARTIES
The President of the Fund is also the President and Chief Investment Officer of
Schwartz Investment Counsel, Inc. (the Adviser). The Chairman of the Board of
the Fund is also the President and CEO of Gregory J. Schwartz & Co., Inc. (the
Distributor). Certain other trustees and officers of the Fund are officers of
the Adviser or of Countrywide Fund Services, Inc. (CFS), the administrative,
accounting and transfer agent for the Fund.
Pursuant to an Investment Advisory Agreement between the Fund and the Adviser,
the Adviser is responsible for the management of the Fund and provides
investment advice along with the necessary personnel, facilities, equipment and
certain other services necessary to the operations of the Fund. For such
services, the Fund pays the Adviser a quarterly fee equal to the annual rate of
1.5% of the average daily net assets up to $75 million; 1.25% of such assets
from $75 million to $100 million; and 1% of such assets in excess of $100
million.
The Distributor is the primary agent for the distribution of the Fund and
receives fees from the Adviser, not the Fund or its shareholders.
Pursuant to an Administration, Accounting and Transfer Agency Agreement between
the Fund and CFS, CFS supplies regulatory and compliance services, calculates
the daily net asset value per share, maintains the financial books and records
of the Fund, maintains the records of each shareholder's account, and processes
purchases and redemptions of the Fund's shares. For the performance of these
services, the Fund pays CFS a fee, payable monthly, at an annual rate of .22% of
average daily net assets up to $25 million; .20% of such assets from $25 million
to $100 million; and .15% of such assets in excess of $100 million.
3. INVESTMENT TRANSACTIONS
Purchases and proceeds from sales and maturities of investments other than
short-term investments, for the six months ended June 30, 1998 were $16,521,925
and $13,552,865, respectively. As of June 30, 1998, net unrealized appreciation
of securities was $12,844,486 for federal income tax purposes of which
$17,155,629 related to appreciated securities and $4,311,143 related to
depreciated securities. The aggregate cost of investments at June 30, 1998, for
federal income tax purposes was $61,193,687.
11
<PAGE>
[back cover]
SCHWARTZ VALUE FUND
a series of
Schwartz Investment Trust
3707 W. Maple Road
Bloomfield Hills, Michigan 48301
(248) 644-8500
BOARD OF TRUSTEES
Donald J. Dawson, Jr.
Fred A. Erb
John J. McHale
Sidney F. McKenna
George P. Schwartz, CFA
Gregory J. Schwartz
OFFICERS
Gregory J. Schwartz, Chairman of the Board
George P. Schwartz, CFA, President
Richard L. Platte, Jr., CFA, V.P./Secretary/Treasurer
Robert G. Dorsey, CPA, Assistant Vice President
John F. Splain, Assistant Secretary
Mark J. Seger, CPA, Assistant Treasurer
INVESTMENT ADVISER
SCHWARTZ INVESTMENT COUNSEL, INC.
3707 W. Maple Road
Bloomfield Hills, Michigan 48301
DISTRIBUTOR
GREGORY J. SCHWARTZ & CO., INC.
3707 W. Maple Road
Bloomfield Hills, Michigan 48301
CUSTODIAN
FIFTH THIRD BANK
38 Fountain Square Plaza
Cincinnati, Ohio 45263
ADMINISTRATOR
COUNTRYWIDE FUND SERVICES, INC.
P.O. Box 5354
Cincinnati, Ohio 45201-5354
AUDITORS
DELOITTE & TOUCHE LLP
1700 Courthouse Plaza Northeast
Dayton, Ohio 45402
LEGAL COUNSEL
SULLIVAN & WORCESTER LLP
1025 Connecticut Avenue, N.W.
Washington, D.C. 20036
SCHWARTZ VALUE FUND is a 100% no-load diversified investment company (a mutual
fund). The investment objective is long-term capital appreciation.
SCHWARTZ
VALUE FUND
a series of
SCHWARTZ
INVESTMENT TRUST
[LOGO]
SEMI-ANNUAL REPORT
(UNAUDITED)
for the six months ended
JUNE 30, 1998
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000891160
<NAME> SCHWARTZ INVESTMENT TRUST
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> JUN-30-1998
<INVESTMENTS-AT-COST> 61,193,687
<INVESTMENTS-AT-VALUE> 74,038,174
<RECEIVABLES> 116,028
<ASSETS-OTHER> 19,157
<OTHER-ITEMS-ASSETS> 3,899
<TOTAL-ASSETS> 74,177,258
<PAYABLE-FOR-SECURITIES> 286,554
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 311,307
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</TABLE>
