SHAREHOLDER ACCOUNTS CORPORATE OFFICES
c/o Integrated 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
[LOGO]
Dear Fellow Shareowner,
As you know, I have long exhorted the merits of value investing, which has been
out-of-favor among investors for some time. However, in the second quarter an
important inflection point may have been reached. During the quarter, Schwartz
Value Fund was up 3.7%, handily outpacing the Russell 2000, the NASDAQ, and the
Dow, which were down 4.1%, 13.3% and 4.0%, respectively. Similarly, for the
first 6 months of this year, Schwartz Value Fund rose 6.9%, again better than
the Russell 2000 at 2.5%, the NASDAQ at negative 2.5% and the Dow at negative
8.5%. This outperformance was long overdue.
In recent years, the most aggressive investors have looked the smartest. Those
who purchased high P-E and speculative issues were richly rewarded. It seemed
the rules of investing had been rewritten to emphasize growth at any price. Risk
was ignored as old fashioned. This mania reached its peak in March as the NASDAQ
passed 5100. Then suddenly reality returned to the market. Fundamentally, not
much had changed. Earnings, for the most part, were meeting or exceeding
expectations. But seemingly overnight, investor psychology changed dramatically.
Stratospheric tech P-Es came crashing down, the IPO market withered, and the
Internet bubble lost most of its air, with some dot.com stocks off 90% from
their highs. As a result, stock valuations in general have become more
realistic, and earnings and cash flow are again being hailed as important
determinants of stock prices. The old time religion of fundamentals has been
restored, while momentum players and speculators who previously posed as
investors, have had their comeuppance.
This inevitable return to a rational analysis of stock prices sparked a renewed
interest in out-of-favor stocks, which clearly benefited the Schwartz Value
Fund. A number of holdings in the portfolio experienced strong price
appreciation during the first six months of this year. Littelfuse, Inc. up 102%,
and Convergys Corporation up 69%, are prospering from the booming
telecommunications industry. Littelfuse makes fuses and circuits used in cell
phones, while Convergys, an outsourcing beneficiary, handles billing services
for major telecommunications companies. Other big winners include Patterson
Energy up 119% and Input/Output up 67%. Both have thrived as oil prices
rebounded from last year's lows. IMPATH Inc., up 113%, is a rapidly growing
provider of diagnostic services for cancer patients.
These companies, and many more like them in the Fund, have performed
operationally as we anticipated. Their recent share price appreciation was not
due as much to their improving fundamentals as it was to a new perception in the
marketplace. Their shares had been incredibly
<PAGE>
cheap and ignored, as investors focused solely on large-cap, high-tech, and
Internet stocks. All it took for them to see significant price appreciation was
a change in investor psychology with respect to value stocks. The Schwartz Value
Fund has many more stocks, with favorable prospects, that have not yet seen
their true value reflected in their share prices.
Even though the value approach to investing is gaining adherents daily, as value
stocks have finally started to outperform, inexpensive stocks still abound.
Schwartz Value Fund has several, with exceptional risk-reward ratios. Investors
in the aggregate, seem to becoming more selective, seeking established companies
with healthy profits, selling at reasonable prices. As such, our stocks should
continue to shine.
I am pleased to report Schwartz Value Fund has retained the services of a new
transfer agent and fund administrator -- Ultimus Fund Solutions, LLC. This
change will allow us to provide better service to shareholders at a reduced cost
to the Fund. Effective August 21, 2000, the new address for mailing checks to
purchase Fund shares is:
Schwartz Value Fund
c/o Ultimus Fund Solutions, LLC
P.O. Box 46707
Cincinnati, Ohio 45246
Wiring instructions for purchases of Fund shares will be:
Fifth Third Bank
ABA #042 000 314
Attn: Schwartz Value Fund
Acct. #999-43227
For credit to:[insert the account name and number]
As always,if you have any questions,please call me at 248-644-8500.
Sincerely,
SCHWARTZ VALUE FUND
/s/ George P. Schwartz
George P. Schwartz, CFA
PRESIDENT
August 11, 2000
2
<PAGE>
SCHWARTZ VALUE FUND
SCHEDULE OF INVESTMENTS
June 30, 2000 (Unaudited)
================================================================================
MARKET
SHARES COMMON STOCK -- 90.4% VALUE
--------------------------------------------------------------------------------
APPAREL & TEXTILES -- 1.3%
7,500 Jones Apparel Group,Inc.* .......................... $ 176,250
10,000 K-Swiss Inc.-- Class A ............................. 159,375
15,000 Nautica Enterprises,Inc.* .......................... 160,312
------------
495,937
------------
BUILDING MATERIALS & CONSTRUCTION -- 4.2%
150,000 Champion Enterprises* .............................. 731,250
10,000 Fleetwood Enterprises Inc. ......................... 142,500
10,000 Gardner Denver Inc.* ............................... 178,750
10,000 Masco Corporation .................................. 180,625
15,000 Schuler Homes,Inc.* ................................ 91,875
10,000 Toll Brothers Inc.* ................................ 205,000
------------
1,530,000
------------
BUSINESS & INDUSTRIAL PRODUCTS -- 0.2%
3,000 AptarGroup,Inc ..................................... 81,000
------------
BUSINESS SERVICES -- 4.1%
12,500 Concord EFS,Inc.* .................................. 325,000
10,000 Convergys Corporation* ............................. 518,750
10,000 Kronos,Inc.* ....................................... 260,000
9,000 NOVA Corporation* .................................. 251,438
15,000 The Servicemaster Company .......................... 170,625
------------
1,525,813
------------
COMMUNICATIONS EQUIPMENT & SERVICES -- 2.4%
7,500 Datron Systems Incorporated* ....................... 75,938
40,000 LoJack Corporation* ................................ 277,500
22,000 Universal Electronics Inc.* ........................ 540,375
------------
893,813
------------
3
<PAGE>
SCHEDULE OF INVESTMENTS (continued)
================================================================================
MARKET
SHARES COMMON STOCK -- 90.4% VALUE
--------------------------------------------------------------------------------
COMPUTER EQUIPMENT & SERVICES -- 2.2%
10,000 National Data Corporation .......................... $ 230,000
15,000 NCR Corporation* ................................... 584,062
------------
814,062
------------
CONSUMER PRODUCTS -- DURABLES -- 5.1%
100,000 Craftmade International,Inc ........................ 675,000
70,000 Griffon Corporation* ............................... 389,375
50,000 HMI Industries Inc.* ............................... 65,625
15,000 La-Z-Boy Incorporated .............................. 210,000
20,000 Snap-on Incorporated ............................... 532,500
------------
1,872,500
------------
CONSUMER PRODUCTS -- NONDURABLES -- 2.7%
20,000 Helen Of Troy Limited* ............................. 111,875
40,000 Velcro Industries N.V .............................. 440,000
17,500 Weyco Group,Inc .................................... 446,250
------------
998,125
------------
EDUCATION-- 2.2%
10,000 DeVRY,Inc.* ........................................ 264,375
20,000 Nobel Learning Communities,Inc.* ................... 157,500
7,500 Quest Education Corporation* ....................... 135,469
10,000 Strayer Education,Inc .............................. 240,000
------------
797,344
------------
ELECTRONICS -- 1.3%
10,000 Littelfuse,Inc.* ................................... 490,000
------------
ENERGY & MINING -- 9.1%
2,500 Diamond Offshore Drilling,Inc ...................... 87,812
25,000 Forest Oil Corporation* ............................ 398,438
40,500 Inco,Ltd.-- Class VBN* ............................. 177,188
150,000 Input/Output,Inc.* ................................. 1,265,625
10,000 Newmont Mining Corporation ......................... 216,250
25,000 Oglebay Norton Company ............................. 637,500
8,000 Patterson Energy,Inc.* ............................. 228,000
30,000 Santa Fe Snyder Corporation* ....................... 341,250
------------
3,352,063
------------
4
<PAGE>
SCHEDULE OF INVESTMENTS (continued)
================================================================================
MARKET
SHARES COMMON STOCK -- 90.4% VALUE
--------------------------------------------------------------------------------
ENVIRONMENTAL SERVICES -- 1.5%
50,000 Sevenson Environmental Services,Inc ................ $ 550,000
------------
FINANCE -- BANKS & THRIFTS -- 6.7%
3,000 Comerica,Inc ....................................... 134,625
137,500 Ottawa Financial Corporation ....................... 2,337,500
------------
2,472,125
------------
FINANCE -- INSURANCE -- 1.6%
40,000 Queensway Financial Holdings Limited* .............. 68,841
85,000 Unico American Corporation ......................... 510,000
------------
578,841
------------
FINANCE -- MISCELLANEOUS -- 2.4%
25,000 Countrywide Credit Industries,Inc .................. 757,812
3,000 Freddie Mac ........................................ 121,500
------------
879,312
------------
HEALTHCARE -- 5.4%
50,000 America Service Group Inc.* ........................ 1,025,000
4,000 IMPATH Inc.* ....................................... 217,000
75,000 STERIS Corporation* ................................ 665,625
10,000 Theragenics Corporation* ........................... 85,625
------------
1,993,250
------------
HOLDING COMPANIES -- 3.2%
15,000 Fortune Brands Inc. ................................ 345,938
60,000 PICO Holdings,Inc.* ................................ 843,750
------------
1,189,688
------------
INDUSTRIAL PRODUCTS & SERVICES -- 4.3%
3,000 Eaton Corporation .................................. 201,000
2,500 Greif Bros.Corporation ............................. 76,875
17,500 Kaydon Corporation ................................. 367,500
50,000 Maritrans Inc. ..................................... 303,125
100,000 Perceptron,Inc.* ................................... 340,625
3,000 Simpson Manufacturing Co.,Inc ...................... 143,438
15,000 X-Rite,Inc ......................................... 136,875
------------
1,569,438
------------
5
<PAGE>
SCHEDULE OF INVESTMENTS (continued)
================================================================================
MARKET
SHARES COMMON STOCK -- 90.4% VALUE
--------------------------------------------------------------------------------
INFORMATION TECHNOLOGY -- 15.9%
5,000 Barra,Inc.* ........................................ $ 247,812
115,000 Compuware Corporation* ............................. 1,193,125
225,000 Data Research Associates,Inc ....................... 1,768,359
2,500 National Computer Systems,Inc ...................... 123,125
18,000 Rainbow Technologies,Inc.* ......................... 875,250
3,000 RSA Security Inc.* ................................. 207,750
50,000 SPSS Inc.* ......................................... 1,456,250
------------
5,871,671
------------
PRINTING & PUBLISHING -- 1.2%
50,000 Thomas Nelson,Inc .................................. 428,125
------------
REAL ESTATE -- 6.5%
15,000 Host Marriott Corp. ................................ 140,625
16,499 I.Gordon Corporation* .............................. 147,460
150,000 Malan Realty Investors,Inc ......................... 2,090,625
------------
2,378,710
------------
RETAIL -- 2.4%
10,000 Mcsi Inc.* ......................................... 258,750
3,000 Payless Shoesource,Inc.* ........................... 156,562
25,000 Ross Stores Inc. ................................... 426,562
10,000 The Good Guys,Inc.* ................................ 36,250
------------
878,124
------------
TECHNOLOGY -- 0.9%
10,000 Cable Design Technologies .......................... 335,000
------------
TRANSPORTATION -- 2.7%
25,000 Providence And Worcester Railroad Company .......... 190,625
134,800 The Morgan Group,Inc.-- Class A .................... 808,800
------------
999,425
------------
MISCELLANEOUS -- 0.9%
5,000 H&R Block,Inc ...................................... 161,875
10,000 Pall Corporation ................................... 185,000
------------
346,875
------------
TOTAL COMMON STOCK (COST $29,653,139)............... 33,321,241
------------
6
SCHEDULE OF INVESTMENTS (continued)
================================================================================
MARKET
SHARES COMMON STOCK -- 90.4% VALUE
--------------------------------------------------------------------------------
PREFERRED STOCK -- 0.4%(COST $132,739)
35,000 Telos Corporation, 12% Cumulative
Exchangeable Preferred* .......................... $ 157,500
------------
CLOSED-END FUNDS -- 4.2%
25,000 Central Securities Co. ............................. 887,500
135,000 Royce Focus Trust,Inc .............................. 662,344
------------
TOTAL CLOSED-END FUNDS (COST $1,299,207)............ 1,549,844
------------
REPURCHASE AGREEMENTS(1)-- 6.6%(COST $2,431,454)
$2,431,454 Fifth Third Bank,6.17%,dated 6/30/00,due 7/03/00,
repurchase proceeds:$2,432,704.................... 2,431,454
------------
TOTAL INVESTMENTS -- 101.6%(COST $33,516,539)....... 37,460,039
------------
LIABILITIES IN EXCESS OF OTHER ASSETS -- (1.6%)..... (583,401)
============
NET ASSETS -- 100.0%................................ $ 36,876,638
============
* Non-income producing security.
(1) Repurchase agreements are fully collateralized by U. S. Government
obligations.
See notes to financial statements.
7
<PAGE>
SCHWARTZ VALUE FUND
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2000 (Unaudited)
================================================================================
ASSETS
Investments, at value (cost of $33,516,539) (Note 1) ............ $ 37,460,039
Receivable for securities sold .................................. 539,344
Dividends receivable ............................................ 76,988
Interest receivable ............................................. 417
Other assets .................................................... 12,184
------------
TOTAL ASSETS ......................................... 38,088,972
------------
LIABILITIES
Bank overdraft .................................................. 179,807
Payable for capital shares redeemed ............................. 211,148
Payable for securities purchased ................................ 685,375
Accrued investment advisory fees (Note 2) ....................... 127,759
Other accrued expenses and liabilities .......................... 8,245
------------
TOTAL LIABILITIES .................................... 1,212,334
------------
NET ASSETS ...................................................... $ 36,876,638
============
NET ASSETS CONSIST OF
Paid-in capital ................................................. $ 30,412,587
Accumulated net investment loss ................................. (4,552)
Accumulated net realized gains from security transactions ....... 2,525,103
Net unrealized appreciation on investments ...................... 3,943,500
------------
NET ASSETS ...................................................... $ 36,876,638
============
Shares of beneficial interest outstanding (unlimited number of
shares authorized, no par value) .............................. 1,746,786
============
Net asset value, redemption price, and offering price per share . $ 21.11
============
See notes to financial statements.
8
<PAGE>
SCHWARTZ VALUE FUND
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 2000 (Unaudited)
================================================================================
INVESTMENT INCOME
Dividends ..................................................... $ 325,925
Interest ...................................................... 43,713
------------
TOTAL INVESTMENT INCOME .................................... 369,638
------------
EXPENSES
Investment advisory fees (Note 2) ............................. 277,183
Administration, accounting and transfer agent fees (Note 2) ... 31,931
Trustees' fees and expenses ................................... 19,660
Legal and audit fees .......................................... 16,404
Insurance expense ............................................. 9,229
Registration fees ............................................. 9,498
Custodian fees ................................................ 5,997
Reports to shareholders ....................................... 4,288
------------
TOTAL EXPENSES ............................................. 374,190
------------
NET INVESTMENT LOSS ............................................. (4,552)
------------
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on investments ............................. 2,895,810
Net change in unrealized appreciation/depreciation on
investments ................................................. (1,568,270)
------------
NET REALIZED AND UNREALIZED GAINS ON INVESTMENTS ................ 1,327,540
------------
NET INCREASE IN NET ASSETS FROM OPERATIONS ...................... $ 1,322,988
============
See notes to financial statements.
9
<PAGE>
<TABLE>
<CAPTION>
SCHWARTZ VALUE FUND
STATEMENTS OF CHANGES IN NET ASSETS
For the Periods Ended June 30, 2000 and December 31, 1999
=======================================================================================
Six Months Ended Year Ended
June 30, 2000 December 31,
(Unaudited) 1999
------------ ------------
FROM OPERATIONS
<S> <C> <C>
Net investment loss .................................. $ (4,552) $ (323,254)
Net realized gains on investments .................... 2,895,810 2,790,206
Net change in unrealized appreciation/depreciation on
investments ....................................... (1,568,270) (4,141,106)
------------ ------------
Net increase (decrease) in net assets from operations .. 1,322,988 (1,674,154)
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS
From net realized gains on investments ............... -- (2,111,109)
Distributions in excess of realized gains ............ -- (370,707)
------------ ------------
Net decrease in net assets from distributions to
shareholders ......................................... -- (2,481,816)
------------ ------------
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold ............................ 2,987,571 4,815,186
Reinvestment of distributions to shareholders ........ -- 2,244,904
Payments for shares redeemed ......................... (9,106,394) (23,929,076)
------------ ------------
Net decrease in net assets from capital share
transactions ......................................... (6,118,823) (16,868,986)
------------ ------------
TOTAL DECREASE IN NET ASSETS ........................... (4,795,835) (21,024,956)
NET ASSETS
Beginning of period .................................. 41,672,473 62,697,429
------------ ------------
End of period ........................................ $ 36,876,638 $ 41,672,473
============ ============
ACCUMULATED NET INVESTMENT LOSS ........................ $ (4,552) $ --
============ ============
SUMMARY OF CAPITAL SHARE ACTIVITY
Shares sold .......................................... 147,551 224,924
Shares issued in reinvestment of distributions to
shareholders ...................................... -- 113,724
Shares redeemed ...................................... (512,294) (1,143,853)
------------ ------------
Net decrease in shares outstanding ................... (364,743) (805,205)
Shares outstanding, beginning of period .............. 2,111,529 2,916,734
------------ ------------
Shares outstanding, end of period .................... 1,746,786 2,111,529
============ ============
</TABLE>
See notes to financial statements.
10
<PAGE>
<TABLE>
<CAPTION>
SCHWARTZ VALUE FUND
FINANCIAL HIGHLIGHTS
Per Share Data for a Share Outstanding Throughout Each Period
=================================================================================================================================
Six Months Year Year Year Year Year
Ended Ended Ended Ended Ended Ended
June 30, 2000 Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
(Unaudited) 1999 1998 1997 1996 1995
-----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period ......... $ 19.74 $ 21.50 $ 23.99 $ 21.19 $ 19.66 $ 18.12
-------- -------- -------- -------- -------- --------
Income from investment operations:
Net investment income (loss) ................. -- (0.15) (0.09) 0.06 (0.02) (0.03)
Net realized and unrealized gains
(losses) on investments ................. 1.37 (0.38) (2.40) 5.88 3.61 3.09
-------- -------- -------- -------- -------- --------
Total from investment operations .......... 1.37 (0.53) (2.49) 5.94 3.59 3.06
-------- -------- -------- -------- -------- --------
Less distributions:
From net investment income ................ -- -- -- (0.06) -- --
From net realized gains on investments .... -- (1.05) -- (3.03) (2.06) (1.52)
In excess of net realized gains on
investments ............................. -- (0.18) -- (0.05) -- --
-------- -------- -------- -------- -------- --------
Total distributions ....................... -- (1.23) -- (3.14) (2.06) (1.52)
-------- -------- -------- -------- -------- --------
Net asset value at end of period ............... $ 21.11 $ 19.74 $ 21.50 $ 23.99 $ 21.19 $ 19.66
======== ======== ======== ======== ======== ========
Total return .............................. 6.9%(A) (2.5)% (10.4)% 28.0% 18.3% 16.9%
======== ======== ======== ======== ======== ========
Ratios/Supplementary Data:
Ratio of expenses to average net assets ........ 1.98%(B) 2.05% 1.94% 1.91% 1.97% 2.00%
Ratio of net investment income
(loss) to average net assets ................. (0.02)(B) (0.61)% (0.39)% 0.24% (0.08)% (0.18)%
Portfolio turnover rate ........................ 47%(B) 59% 54% 47% 50% 70%
Net assets at end of period (000's) ............ $ 36,877 $ 41,672 $ 62,697 $ 69,967 $ 55,105 $ 53,137
</TABLE>
--------------------
(A) Not annualized.
(B) Annualized.
See notes to financial statements.
11
<PAGE>
SCHWARTZ VALUE FUND
NOTES TO FINANCIAL STATEMENTS
June 30, 2000 (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 small cap value stocks. This investment in
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 the regular session of trading 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.
(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 or excise 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
12
<PAGE>
financial statements may differ from that reported in the Fund's tax return
and, consequently, the character of distributions to shareholders reported
in the statements of changes and 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. Net investment losses, for
tax purposes, are reclassified to paid-in capital.
(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. Discounts and premiums on securities purchased are
amortized in accordance with income tax regulations which approximate GAAP.
(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. The Fund's policy is to take possession of
the underlying securities and, on a daily basis, mark to market such
securities to ensure that the value, including 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 Integrated Fund Services, Inc. (IFS), 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
13
<PAGE>
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 IFS, IFS 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 IFS 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
Cost of purchases and proceeds from sales and maturities of investments other
than short-term investments, for the six months ended June 30, 2000, were
$8,505,332 and $15,251,681, respectively.
4. FEDERAL INCOME TAXES
As of June 30, 2000, net unrealized appreciation of securities was $3,943,500
for federal income tax purposes of which $7,560,938 related to appreciated
securities and $3,617,438 related to depreciated securities. The aggregate cost
of investments at June 30, 2000 for federal income tax purposes was $33,516,539.
14
<PAGE>
SCHWARTZ VALUE FUND
a series of
Schwartz Investment Trust
3707 W. Maple Road
Bloomfield Hills, Michigan 48301
(248)644-8500
BOARD OF TRUSTEES SCHWARTZ
Donald J. Dawson, Jr. VALUE FUND
Fred A. Erb
John J. McHale a series of
Sidney F. McKenna
George P. Schwartz, CFA SCHWARTZ
Gregory J.Schwartz, Chairman INVESTMENT
TRUST
OFFICERS
George P. Schwartz, CFA, President
Richard L. Platte, Jr., CFA, V.P./Secretary
Timothy S. Schwartz, Treasurer
Tina D. Hosking, CPA, Assistant Secretary
Brian J. Manley, CPA, Assistant Secretary
Robert L. Bennett, Assistant Treasurer
[LOGO]
INVESTMENT ADVISER
SCHWARTZ INVESTMENT COUNSEL, INC.
3707 W. Maple Road
Bloomfield Hills, Michigan 48301
DISTRIBUTOR SEMI-ANNUAL REPORT
GREGORY J. SCHWARTZ & CO., INC. (UNAUDITED)
3707 W. Maple Road
Bloomfield Hills, Michigan 48301 for the six months ended
JUNE 30,2000
CUSTODIAN
FIFTH THIRD BANK
38 Fountain Square Plaza
Cincinnati, Ohio 45263
ADMINISTRATOR
INTEGRATED 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.
