<Page>
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OMB APPROVAL
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OMB Number: 3235-0570
Expires: November 30, 2005
Estimated average burden
hours per response....... 5.0
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-8253
---------------------------------------------
Boyar Value Fund, Inc.
- -------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
590 Madison Avenue New York, New York 10022
- -------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
BISYS Fund Services, 3435 Stelzer Road, Columbus, OH 43219
- -------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: 614-470-8000
----------------------------
Date of fiscal year end: December 31, 2003
--------------------------
Date of reporting period: January 1, 2003 through June 30, 2003
--------------------------------------------
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. Section 3507.
<Page>
ITEM 1. REPORTS TO STOCKHOLDERS.
Include a copy of the report transmitted to stockholders pursuant to
Rule 30e-1 under the Act (17 CFR 270.30e-1).
<Page>
[GRAPHIC]
THE BOYAR VALUE FUND
SEMI-ANNUAL REPORT
JUNE 30, 2003
[BOYAR VALUE FUND LOGO]
[CLAYMORE LOGO]
<Page>
[BOYAR VALUE FUND LOGO]
August 4, 2003
Dear Boyar Value Fund Shareholder:
SOME THOUGHTS ABOUT THE MARKET
- - 2003 started the way 2002 ended, with the bears outdistancing the bulls. This
trend quickly reversed course with a quicker than anticipated end to the
major hostilities in Iraq, and the passage of a significant economic stimulus
package.
- - During 2002, the Boyar Value Fund experienced its first negative year since
it commenced operations five years ago and although we lost money last year,
the percentage decline was far less than the majority of mutual fund
managers, and significantly less than the leading stock market indices.
- - The fund rebounded quite nicely during the first six months of the current
year producing a 13.4% gain (before sales loads, if applicable). These
results bested both the DJIA and the S&P 500, but trailed the NASDAQ and
Russell 2000.
- - On a risk adjusted basis, the fund performed even better. Our large cash
position (33.1% on June 30, 2003) inhibited our overall performance. If you
back out the cash component, return on equity exceeded 22.0% for the six
months ended June 30, 2003.
- - In our performance update dated March 31, 2003, we wrote, "Although it is
impossible to predict the market's direction during the short term, we
believe as a direct result of the precipitous decline in stock prices over
the past few years a growing number of businesses are becoming quite
attractive."
- - Well, the magnitude of the recent rally has significantly reduced the number
of businesses that are available to purchase at attractive prices. Finding a
great business that you want to own is only half of the investment process.
Purchasing the company at an attractive price is of equal importance. The
window of opportunity that opened during the first quarter has, in most
instances, temporarily closed. What is most troubling to us about the last
six months was the huge advance in the NASDAQ, particularly technology,
internet and communications-related businesses. The valuations of a great
many of these companies are very difficult to justify, utilizing any
acceptable analytical benchmark available, and thus we say "buyer beware!"
- - Coming into 2003, we would have been quite satisfied with an annual return of
13.0%. It took only six months to achieve those results, and we will remain
cautious until "Mr. Market" becomes more accommodating.
- - Remember, patience is a key tenet of successful investing.
1
<Page>
STATISTICAL RESULTS
<Table>
<Caption>
SIX MONTHS
----------
BOYAR VALUE FUND RUSSELL 2000 INDEX DJIA S&P 500 NASDAQ COMP.
---------------- ------------------ ---- ------- ------------
13.35% 17.89% 9.00% 11.75% 21.81%
</Table>
AVERAGE ANNUAL TOTAL RETURNS SINCE INCEPTION
<Table>
<Caption>
SINCE
INCEPTION
5/5/98 THROUGH 6/30/03 1 YEAR 3 YEAR 5 YEAR (5/5/98)
--------------------------------------------------------------------------
At NAV 6.12% 5.32% 7.00% 6.70%
Inclusive of sales charges 0.83% 3.53% 5.92% 5.64%
After taxes on distribution 0.50% 3.22% 5.69% 5.42%
After taxes on distribution
and the sale of shares 0.73% 2.89% 5.01% 4.77%
S&P 500 Index 0.25% -11.19% -1.61% -1.20%
Russell 2000 Index -1.63% -9.34% 5.30% 0.02%
</Table>
[CHART]
CUMULATIVE RETURNS SINCE INCEPTION
At NAV (5/5/98 through 6/30/03)
<Table>
S&P 500 Index -6.04%
Russell 2000 Index 0.10%
Boyar Value Fund 39.70%
</Table>
Past performance is not indicative of future results. The Boyar Value Fund has a
maximum sales charge of 5.00%. After-tax returns are calculated using the
highest historical individual Federal income tax rate and do not reflect the
additional impact of state and local taxes. Actual after-tax returns depend on a
shareholder's tax situation and may differ from those shown. After-tax returns
are not relevant for shareholders who hold fund shares in tax-deferred accounts
or to shares held by non-taxable securities. It is important to note that
certain fees of the Fund are currently being waived and absent such waivers
returns would have been lower.
The S&P 500 is an unmanaged index of stocks trading in the United States. Index
performance illustrated is hypothetical and is not indicative of any mutual fund
investment.
The Russell 2000 Index measures the performance of the 2,000 smallest companies
in the Russell 3000 Index, which represents approximately 8.00% of the total
market capitalization of the Russell 3000 Index. Index performance illustrated
is hypothetical and is not indicative of any mutual fund investment.
SEARS ROEBUCK - AN EXAMPLE OF THE MARKETPLACE OVERREACTING TO NEGATIVE NEWS, AND
HOW THE BOYAR VALUE FUND TOOK ADVANTAGE OF THE OPPORTUNITY.
- - The Boyar Value Fund believes that the market price of a stock on any given
day does not reflect the underlying worth of a business, but represents what
a buyer is willing to pay for the equity of the company at that particular
moment in time, and what a seller is willing to accept, for those shares.
- - Sears common shares lost a significant portion of its market capitalization
when it disclosed problems at its credit card operation. We have found that
on occasion Wall Street will overreact to such announcements. We believed
this was the case with Sears.
2
<Page>
- - We began purchasing Sears common equity for the Boyar Value Fund on
October 21, 2002 at a price of $24.71. We continued to buy more shares, and
did so through May 6, 2003. In total we purchased 9,800 shares, at an average
price of $26.97.
- - Our investment rationale was quite simple. In our opinion, the credit card
operation was worth slightly less than the current market value of the entire
enterprise, and you were getting its retail business and real estate that it
owned for virtually zero cost.
- - On July 15th, Sears announced it would sell its credit card operation to
Citigroup for more than $3 billion.
- - The question now remains will Sears sell its real estate? Sears owns 519 of
its 872 mall stores, which in our opinion could fetch over $7 billion.
- - Sears shares closed at $40.62 on August 1, 2003.
BOYAR VALUE FUND PHILOSOPHY GOALS
- - 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. We will not, and
never have, invested in fads or gimmicks such as the Internet.
- - Furthermore, a substantial number of 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.
- - 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, we believe that it does create a "margin of safety," since most of
these companies have plunged in value by such a margin that a good deal of
the downside risk has been significantly reduced.
- - Over an investment time horizon of three to five years, it is our hope that
these undervalued corporations will be re-evaluated upward by the stock
market or the assets of the businesses may be acquired by a third party.
- - The competition to capture mutual fund assets is quite fierce. Most of the
large mutual fund families have considerable sales forces and extensive
marketing budgets. In many instances, no matter how great your track record,
in order to be on the preferred list of funds for full service brokers you
have to make a fairly significant up front payment, an arrangement known as
revenue sharing. Since Boyar Value Fund currently does not utilize any of
these tactics, we are counting on good performance and referrals to grow. We
would appreciate you telling your friends and business associates about the
Boyar Value Fund.
3
<Page>
If you have any questions, please do not hesitate to call (212) 995-8300.
Very truly yours,
/s/ Mark A. Boyar
Mark A. Boyar
Chief Investment Officer
Past performance is not a guarantee of future results.
Pursuant to a written contract, the Investment Manager and the Adviser have
agreed to waive a portion of their fees and reimburse certain expenses of the
Fund to the extent necessary to limit the Fund's operating expenses to 1.75% of
average daily net assets. Without the waivers and reimbursements, the Fund's
performance may be lower.
Claymore Securities, Inc., 210 North Hale Wheaton, Illinois 60187 distributes
the fund.
4
<Page>
BOYAR VALUE FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2003
(Unaudited)
<Table>
ASSETS
Investment securities:
At cost $ 17,093,273
==============
At value $ 18,495,029
Dividends and interest receivable 10,115
Receivable for investments sold 47,669
Receivable for capital shares sold 9,222
Other assets 29,559
--------------
TOTAL ASSETS 18,591,594
--------------
LIABILITIES
Payable for capital shares redeemed 12,542
Payable to Directors' 8,393
Payable to Administrator 2,075
Other accrued expenses and liabilities 10,535
--------------
TOTAL LIABILITIES 33,545
--------------
NET ASSETS $ 18,558,049
==============
NET ASSETS CONSIST OF:
Paid-in capital $ 16,801,523
Accumulated net investment loss (41,333)
Accumulated net realized gains on investment transactions 396,103
Net unrealized appreciation on investments 1,401,756
--------------
NET ASSETS $ 18,558,049
==============
Shares of beneficial interest outstanding (1,000,000,000 shares
authorized, $0.001 par value) 1,391,865
==============
Net asset value and redemption price per share (a) $ 13.33
==============
Maximum offering price per share
(net asset value plus sales charge of 5.00% of the offering price) (b) $ 14.03
==============
</Table>
(a) Redemption price per share varies by amount invested and length of time
held.
(b) On investments of $50,000 or more, the offering price is reduced.
See accompanying notes to financial statements.
5
<Page>
BOYAR VALUE FUND, INC.
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 2003
(Unaudited)
<Table>
INVESTMENT INCOME
Dividends $ 63,073
Interest 30,385
--------------
TOTAL INVESTMENT INCOME 93,458
--------------
EXPENSES
Investment advisory fees 38,455
Management fees 38,455
Distribution fees 19,228
Transfer agent fees 15,322
Accounting services fees 13,615
Professional fees 13,321
Administrative services fees 11,537
Registration fees 8,798
Printing and postage expenses 8,655
Directors' fees and expenses 7,652
Custodian fees 6,886
Insurance expense 6,279
Amortization of organization expenses 5,927
Other expenses 19
--------------
TOTAL EXPENSES 194,149
Fees waived by the Adviser (29,679)
Fees waived by the Manager (29,679)
--------------
NET EXPENSES 134,791
--------------
NET INVESTMENT LOSS (41,333)
--------------
REALIZED AND UNREALIZED GAINS ON INVESTMENTS
Net realized gains from security transactions 528,382
Net change in unrealized appreciation/depreciation on investments 1,561,454
--------------
NET REALIZED AND UNREALIZED GAINS ON INVESTMENTS 2,089,836
--------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 2,048,503
==============
</Table>
See accompanying notes to financial statements.
6
<Page>
BOYAR VALUE FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
FOR THE SIX
MONTHS ENDED FOR THE YEAR
JUNE 30, ENDED
2003 DECEMBER 31,
(UNAUDITED) 2002
------------ ------------
FROM OPERATIONS
Net investment loss $ (41,333) $ (59,438)
Net realized gains/(losses) from security transactions 528,382 (5,913)
Net change in unrealized appreciation/depreciation on investments 1,561,454 (1,422,721)
------------ ------------
Net increase/(decrease) in net assets from operations 2,048,503 (1,488,072)
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS
From net realized gains - (235,524)
------------ ------------
Total distributions - (235,524)
------------ ------------
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold 3,360,283 5,746,935
Net asset value of shares issued in reinvestment of
distributions to shareholders - 217,714
Payments for shares redeemed (1,239,030) (2,307,791)
------------ ------------
Net increase in net assets from capital share transactions 2,121,253 3,656,858
------------ ------------
TOTAL INCREASE IN NET ASSETS 4,169,756 1,933,262
NET ASSETS
Beginning of period 14,388,293 12,455,031
------------ ------------
End of period $ 18,558,049 $ 14,388,293
============ ============
CAPITAL SHARE ACTIVITY
Shares Sold 271,012 459,205
Shares Reinvested - 18,482
Shares Redeemed (102,841) (186,974)
------------ ------------
Net increase in shares outstanding 168,171 290,713
============ ============
</Table>
See accompanying notes to financial statements.
7
<Page>
BOYAR VALUE FUND, INC.
FINANCIAL HIGHLIGHTS
Per Share Data and Ratios Throughout Each Period
<Table>
<Caption>
SIX MONTHS
ENDED YEAR YEAR YEAR YEAR PERIOD
JUNE 30, ENDED ENDED ENDED ENDED ENDED
2003 DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
(UNAUDITED) 2002 2001 2000 1999 1998(a)
------------ ------------ ------------ ------------ ------------ ------------
Net asset value at beginning
of period $ 11.76 $ 13.35 $ 11.58 $ 11.09 $ 9.72 $ 10.00
------------ ------------ ------------ ------------ ------------ ------------
Activity from investment
operations:
Net investment income/(loss) (0.03) (0.05) (0.01) 0.03 0.01 0.03
Net realized and unrealized
gains (losses) on
investments 1.60 (1.34) 1.78 0.76 1.37 (0.28)
------------ ------------ ------------ ------------ ------------ ------------
Total from investment operations 1.57 (1.39) 1.77 0.79 1.38 (0.25)
------------ ------------ ------------ ------------ ------------ ------------
Less distributions:
From net investment income - - -(b) (0.03) (0.01) (0.03)
From net realized gains on
investments - (0.20) -(b) (0.27) - -
------------ ------------ ------------ ------------ ------------ ------------
Total distributions - (0.20) - (0.30) (0.01) (0.03)
------------ ------------ ------------ ------------ ------------ ------------
Net asset value at end of period $ 13.33 $ 11.76 $ 13.35 $ 11.58 $ 11.09 $ 9.72
============ ============ ============ ============ ============ ============
Total return (c) 13.35%(d) (10.45%) 15.31% 7.10% 14.24% (2.46%)(d)
============ ============ ============ ============ ============ ============
Net assets at end of period $ 18,558,049 $ 14,388,293 $ 12,455,031 $ 6,375,190 $ 4,134,644 $ 1,415,827
============ ============ ============ ============ ============ ============
Ratio of gross expenses to
average net assets (e) 2.52%(f) 2.64% 2.85% 3.95% 5.28% 13.19%(f)
Ratio of net expenses to average
net assets 1.75%(f) 1.75% 1.75% 1.75% 1.75% 1.75%(f)
Ratio of net investment income
(loss) to average net assets (0.54%)(f) (0.45%) (0.12%) 0.30% 0.15% 0.66%(f)
Portfolio turnover rate 13% 19% 17% 42% 8% 0%
</Table>
(a) Represents the period from the commencement of operations (May 5, 1998)
through December 31, 1998.
(b) Amount rounds to less than $0.01.
(c) Total returns shown exclude the effect of applicable sales loads.
(d) Not annualized.
(e) Represents the ratio of expenses to average net assets absent fee waivers
and/or expense reimbursements by the Adviser/Manager.
(f) Annualized.
See accompanying notes to financial statements.
8
<Page>
BOYAR VALUE FUND, INC.
PORTFOLIO OF INVESTMENTS
June 30, 2003
(Unaudited)
<Table>
<Caption>
SHARES VALUE
- ---------- -------------
COMMON STOCKS - 66.6%
CONSUMER DISCRETIONARY - 35.2%
29,000 AOL Time Warner, Inc.* $ 466,610
4,400 A.T. Cross Co., Class A* 26,136
10,300 Best Buy Co., Inc.* 452,376
21,063 Cablevision Systems Corp., Class A* 437,268
14,000 Carnival Corp. 455,140
6,000 Comcast Corp., Class A Special* 172,980
3,000 Dow Jones & Co., Inc. 129,090
6,000 Ethan Allen Interiors, Inc. 210,960
56,300 Hanover Direct, Inc.* 15,764
30,100 Hilton Hotels Corp. 384,979
10,900 IHOP Corp. 344,113
17,000 Limited Brands 263,500
14,800 McDonald's Corp. 326,488
5,000 Meredith Corp. 220,000
15,000 MGM Mirage* 512,700
20,600 Midas, Inc.* 249,672
4,000 Neiman Marcus Group, Inc. (The), Class A* 146,400
22,500 Playboy Enterprises, Inc., Class B* 306,000
3,500 Scholastic Corp.* 104,230
9,800 Sears, Roebuck & Co. 329,672
38,700 Spiegel, Inc., Class A* 3,096
19,100 Toys "R" Us, Inc.* 231,492
11,000 Tupperware Corp. 157,960
4,153 Viacom, Inc., Class B* 181,320
20,500 Walt Disney Co. (The) 404,875
-------------
6,532,821
-------------
CONSUMER STAPLES - 3.9%
6,000 CVS Corp. 168,180
6,000 H.J. Heinz Co. 197,880
</Table>
See accompanying notes to financial statements.
9
<Page>
<Table>
<Caption>
SHARES VALUE
- ---------- -------------
CONSUMER STAPLES (CONTINUED)
29,000 PepsiAmericas, Inc. $ 364,240
-------------
730,300
-------------
FINANCIAL SERVICES - 14.3%
2,000 American Express Co. 83,620
13,000 Bank of New York Co., Inc. (The) 373,750
4,500 Bank One Corp. 167,310
8,800 Citigroup, Inc. 376,640
9,000 Hudson United Bancorp 307,350
18,750 J.P. Morgan Chase & Co. 640,875
2,200 Lehman Brothers Holdings, Inc. 146,256
5,000 Merrill Lynch & Co., Inc. 233,400
9,000 Providian Financial Corp.* 83,340
14,315 Travelers Property Casualty Corp., Class A 227,609
647 Travelers Property Casualty Corp., Class B 10,203
-------------
2,650,353
-------------
HEALTHCARE - 3.0%
17,800 Bristol-Myers Squibb Co. 483,270
4,200 IMS Health, Inc. 75,558
-------------
558,828
-------------
INDUSTRIAL - 5.2%
23,200 Aviall, Inc.* 263,784
6,400 CDI Corp.* 166,144
24,000 Cendant Corp.* 439,680
3,000 General Electric Co. 86,040
-------------
955,648
-------------
INFORMATION TECHNOLOGY - 2.9%
8,000 Diebold, Inc. 346,000
8,000 DSP Group, Inc.* 172,240
</Table>
See accompanying notes to financial statements.
10
<Page>
<Table>
<Caption>
SHARES VALUE
- ---------- --------------
INFORMATION TECHNOLOGY (CONTINUED)
2,666 ParthusCeva, Inc.* $ 21,728
--------------
539,968
--------------
TELECOMMUNICATION SERVICES - 2.1%
8,000 ALLTEL Corp. 385,760
--------------
TOTAL COMMON STOCKS 12,353,678
--------------
MONEY MARKET - 2.4%
441,225 First American Treasury Obligations Fund, 0.33%** 441,225
--------------
<Caption>
PRINCIPAL
AMOUNT
- ----------
U.S. GOVERNMENT & AGENCY OBLIGATIONS - 30.7%
$5,700,126 Federal Home Loan Bank, Discount Notes, 0.91%, 7/14/03 5,700,126
--------------
TOTAL INVESTMENTS - 99.7% (Cost $17,093,273) 18,495,029
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.3% 63,020
--------------
NET ASSETS - 100.0% $ 18,558,049
==============
</Table>
* - Non-income producing security.
** - Money market fund; interest rate reflects SEC seven-day yield on
June 30, 2003.
See accompanying notes to financial statements.
11
<Page>
BOYAR VALUE FUND, INC.
NOTES TO FINANCIAL STATEMENTS
June 30, 2003
(Unaudited)
1. ORGANIZATION
Boyar Value Fund, Inc. (the "Fund"), is registered as an open-end, diversified
management investment company under the Investment Company Act of 1940, as
amended (the "1940 Act"), and was incorporated on February 28, 1997 under the
laws of the State of Maryland.
2. SIGNIFICANT ACCOUNTING POLICIES
ESTIMATES -- The following is a summary of significant accounting policies
followed by the Fund in preparation of its financial statements. The policies
are in conformity with generally accepted accounting principles in the United
States of America ("GAAP"). 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
those estimates.
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.
Securities traded on a national stock exchange 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 values as
determined in good faith in accordance with consistently applied procedures
established by and under the general supervision of the Board of Directors (the
"Board"). Investments in investment companies are valued at their respective net
asset values as reported by such companies. Short-term notes having less than 61
days remaining until maturity are valued at amortized cost.
SECURITY TRANSACTIONS AND RELATED INCOME -- Security transactions are accounted
for on trade date. Net realized gains or losses from sales of securities are
determined on the specific identification cost basis. Interest income is accrued
as earned. Dividend income is recorded on the ex-dividend date.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- Dividends from net investment
income are declared and paid annually. Distributable net realized capital gains,
if any, are declared and distributed annually.
Dividends from net investment income and distributions from net realized gains
are determined in accordance with federal income tax regulations, which may
differ from GAAP. These "book/tax" differences are either considered temporary
or permanent in nature. To the extent these differences are permanent in nature,
such amounts are reclassified within the composition of net assets based on
their federal tax-basis treatment; temporary differences do not require
reclassification.
ORGANIZATION EXPENSES -- Expenses of organization have been capitalized and are
being amortized on a straight-line basis over five years.
12
<Page>
FEDERAL INCOME TAX -- It is the Fund's policy to comply with the requirements of
the Internal Revenue Code that are applicable to regulated investment companies
and to distribute all of its taxable income to shareholders. Therefore, no
federal income tax provision is required.
3. INVESTMENT TRANSACTIONS
For the six months ended June 30, 2003, cost of purchases and proceeds from
sales of portfolio securities, other than short-term investments, amounted to
$2,601,794 and $1,279,046, respectively.
4. TRANSACTIONS WITH AFFILIATES
The business activities of the Fund are supervised under the direction of the
Board, which is responsible for the overall management of the Fund. Claymore
Fund Management Company, LLC (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 Claymore
Securities, Inc. (the "Distributor") acts as distributor of the Fund's shares.
The Fund has employed Integrated Fund Services, Inc. ("IFS") to provide
administration, accounting and transfer agent services. Certain Directors and
officers of the Fund are also officers of the Manager, the Adviser or IFS.
MANAGEMENT AGREEMENT AND INVESTMENT ADVISORY AGREEMENT -- Pursuant to a
Management Agreement with the Fund, the Manager, under the supervision of the
Board, 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 between 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.
Pursuant to a written contract, the Manager, the Adviser and the Distributor
have agreed to waive a portion of their respective management, advisory and
distribution fees and reimburse certain expenses of the Fund to the extent
necessary to limit the Fund's total annual operating expenses to 1.75% of the
Fund's average daily net assets (the "expense limitation"). The Manager, the
Adviser and the Distributor may subsequently recover reimbursed expenses
13
<Page>
and/or waived fees (within 2 years of the fiscal year end in which the
waiver/reimbursement occurred) from the Fund to the extent that the Fund's
expense ratio is less than the expense limitation. As of June 30, 2003, the
Manager, the Adviser and the Distributor have the following amounts of
waived/reimbursed expenses that may be recovered:
<Table>
<Caption>
AMOUNT EXPIRATION DATE
------------------------------------------
$ 59,358 December 31, 2005
$ 71,680 December 31, 2004
</Table>
ADMINISTRATION AGREEMENT -- Under the terms of an Administration Agreement, IFS
supplies non-investment related administrative and compliance services for the
Fund. IFS supervises the preparation of tax returns, reports to shareholders,
and filings with the Securities and Exchange Commission and state securities
commissions, and materials for meetings of the Board. For these services, IFS
receives a monthly fee from the Fund, based on current asset levels of the Fund,
subject to a minimum monthly fee.
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 the 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 IFS.
5. SUBSEQUENT EVENT
Effective July 1, 2003, BISYS Fund Services Ohio, Inc. ("BISYS") became the new
Administrator and Fund Accounting Agent to the Fund and on July 21, 2003, BISYS
became the new Transfer Agent.
14
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FUND MANAGER
Claymore Fund Management Company, LLC
210 North Hale Street
Wheaton, IL 60187
INVESTMENT ADVISER
Boyar Asset Management, Inc.
35 East 21st Street
New York, NY 10010
ADMINISTRATOR
Integrated Fund Services, Inc.
221 East Fourth Street, Suite 300
Cincinnati, OH 45202
Effective July 1, 2003
BISYS Fund Services Ohio, Inc.
3435 Stelzer Road
Columbus, OH 43219
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ITEM 2. CODE OF ETHICS.
Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal
accounting officer or controller, or persons performing similar functions,
regardless of whether these individuals are employed by the registrant or a
third party. If the registrant has not adopted such a code of ethics,
explain why it has not done so. ONLY EFFECTIVE FOR ANNUAL REPORTS WITH
PERIODS ENDING ON OR AFTER JULY 15, 2003.
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ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of directors has
determined that the registrant either:
(i) Has at least one audit committee financial expert serving
on its audit committee; or
(ii) Does not have an audit committee financial expert serving
on its audit committee.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit
committee financial expert and whether that person is
"independent." In order to be considered "independent" for purposes
of this Item, a member of an audit committee may not, other than in
his or her capacity as a member of the audit committee, the board
of directors, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or
other compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as
defined in Section 2(a)(19) of the Act (15 U.S.C.
80a-2(a)(19)).
(3) If the registrant provides the disclosure required by paragraph
(a)(1)(ii) of this Item, it must explain why it does not have an
audit committee financial expert.
ONLY EFFECTIVE FOR ANNUAL REPORTS WITH PERIODS ENDING ON OR AFTER JULY 15, 2003.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed
for each of the last two fiscal years for professional services rendered by the
principal accountant for the audit of the registrant's annual financial
statements or services that are normally provided by the accountant in
connection with statutory and regulatory filings or engagements for those fiscal
years.
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees
billed in each of the last two fiscal years for assurance and related services
by the principal accountant that are reasonably related to the performance of
the audit of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in
each of the last two fiscal years for professional services rendered by the
principal accountant for tax compliance, tax advice, and tax planning.
Registrants shall describe the nature of the services comprising the fees
disclosed under this category.
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees
billed in each of the last two fiscal years for products and services provided
by the principal accountant, other than the services reported in paragraphs (a)
through (c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
(e) (1) Disclose the audit committee's pre-approval policies and
procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
(2) Disclose the percentage of services described in each of
paragraphs (b) through (d) of this Item that were approved by the audit
committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) If greater than 50 percent, disclose the percentage of hours
expended on the principal accountant's engagement to audit the registrant's
financial statements for the most recent fiscal year that were attributed to
work performed by persons other than the principal accountant's full-time,
permanent employees.
(g) Disclose the aggregate non-audit fees billed by the registrant's
accountant for services rendered to the registrant, and rendered to the
registrant's investment adviser (not including any sub-adviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the adviser that provides ongoing services to the registrant for
each of the last two fiscal years of the registrant.
(h) Disclose whether the registrant's audit committee of the board of
directors has considered whether the provision of nonaudit services that were
rendered to the registrant's investment adviser (not including any subadviser
whose role is primarily portfolio management and is subcontracted with or
overseen by another investment adviser), and any entity controlling, controlled
by, or under common control with the investment adviser that provides ongoing
services to the registrant that were not pre-approved
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pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible
with maintaining the principal accountant's independence.
ONLY EFFECTIVE FOR ANNUAL REPORTS WITH PERIODS ENDING ON OR AFTER DECEMBER 15,
2003.
ITEMS 5-6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual
report on this Form N-CSR must, unless it invests exclusively in non-voting
securities, describe the policies and procedures that it uses to determine how
to vote proxies relating to portfolio securities, including the procedures that
the company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities. NOT APPLICABLE.
ITEM 8. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive
officer or officers and principal financial officer or officers, or persons
performing similar functions, about the effectiveness of the registrant's
disclosure controls and procedures (as defined in Rule 30a-2(c) under the Act
(17 CFR 270.30a-2(c))) based on their evaluation of these controls and
procedures as of a date within 90 days of the filing date of the report that
includes the disclosure required by this paragraph.
IN THE OPINION OF THE PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL
OFFICER, BASED ON THEIR EVALUATION, THE REGISTRANT'S DISCLOSURE CONTROLS AND
PROCEDURES ARE ADEQUATELY DESIGNED AND ARE OPERATING EFFECTIVELY TO ENSURE (i)
THAT MATERIAL INFORMATION RELATING TO THE REGISTRANT, INCLUDING ITS CONSOLIDATED
SUBSIDIARIES, IS MADE KNOWN TO THEM BY OTHERS WITHIN THOSE ENTITIES,
PARTICULARLY DURING THE PERIOD IN WHICH THIS REPORT IS BEING PREPARED; AND (ii)
THAT INFORMATION REQUIRED TO BE DISCLOSED BY THE REGISTRANT ON FORM N-CSR IS
RECORDED, PROCESSED, SUMMARIZED AND REPORTED WITHIN THE TIME PERIODS SPECIFIED
IN THE SECURITIES AND EXCHANGE COMMISSION'S RULES AND FORMS.
(b) Disclose whether or not there were significant changes in the
registrant's internal controls or in other factors that could significantly
affect these controls subsequent to the date of their evaluation, including any
corrective actions with regard to significant deficiencies and material
weaknesses.
THERE WAS NO CHANGE IN THE REGISTRANT'S INTERNAL CONTROL OVER FINANCIAL
REPORTING THAT OCCURRED DURING THE REGISTRANT'S MOST RECENT FISCAL HALF-YEAR
(THE REGISTRANT'S SECOND FISCAL HALF-YEAR IN THE CASE OF AN ANNUAL REPORT) THAT
HAS MATERIALLY AFFECTED, OR IS REASONABLY LIKELY TO MATERIALLY AFFECT, THE
REGISTRANT'S INTERNAL CONTROL OVER FINANCIAL REPORTING.
ITEM 10. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number
the exhibits in the sequence indicated.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of
the disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit. NOT APPLICABLE -
ONLY EFFECTIVE FOR ANNUAL REPORTS WITH PERIODS ENDING ON OR AFTER JULY 15, 2003.
(a)(2) A separate certification for each principal executive officer
and principal financial officer of the registrant as required by Rule 30a-2
under the Act (17 CFR 270.30a-2). CERTIFICATIONS PURSUANT TO SECTION 302 OF THE
SARBANES-OXLEY ACT OF 2002 ARE ATTACHED HERETO.
(b) A separate or combined certification for each principal executive
officer and principal officer of the registrant as required by Rule 30a-2(b)
under the Act of 1940. CERTIFICATIONS PURSUANT TO SECTION 906 OF THE
SARBANES-OXLEY ACT OF 2002 ARE ATTACHED HERETO.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, the registrant has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Boyar Value Fund, Inc.
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By (Signature and Title)* /s/ Arthur A. Jensen Arthur A. Jensen, Treasurer
-------------------------------------------------------
Date August 25, 2003
---------------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Elizabeth W. Lawrence Elizabeth W. Lawrence,
-------------------------- President
----------------------
Date August 25, 2003
---------------------------------------------
By (Signature and Title)* /s/ Arthur A. Jensen Arthur A. Jensen,
--------------------- Treasurer
----------------------
Date August 25, 2003
---------------------------------------------
* Print the name and title of each signing officer under his or her signature.