As a finance expert, I often encounter investors who want their portfolios to reflect their values. For Catholic investors, Ave Maria Mutual Funds offer a unique opportunity to grow wealth while adhering to religious principles. In this article, I’ll explore the fund family’s history, performance, investment strategy, and how it compares to conventional mutual funds.
Table of Contents
What Are Ave Maria Mutual Funds?
Ave Maria Mutual Funds are a suite of faith-based investment vehicles managed by Schwartz Investment Counsel. These funds follow Catholic moral and social teachings, avoiding companies involved in abortion, contraception, pornography, and other activities contrary to Church doctrine.
Key Features of Ave Maria Funds
- Morally Responsible Investing (MRI): Screens out companies violating Catholic principles.
- Competitive Performance: Many funds have outperformed secular counterparts.
- Diversified Portfolios: Cover large-cap, small-cap, bonds, and international markets.
List of Ave Maria Mutual Funds (2024)
Below is a breakdown of the current Ave Maria fund lineup, including their tickers and primary investment focus:
| Fund Name | Ticker Symbol | Category | Expense Ratio |
|---|---|---|---|
| Ave Maria Growth Fund | AVEGX | Large Growth | 0.92% |
| Ave Maria Value Fund | AVEMX | Large Value | 0.85% |
| Ave Maria Bond Fund | AVEFX | Intermediate Core Bond | 0.70% |
| Ave Maria Rising Dividend Fund | AVEDX | Large Blend | 0.85% |
| Ave Maria World Equity Fund | AVEWX | Foreign Large Growth | 1.15% |
| Ave Maria Small-Cap Fund | AVESX | Small Blend | 1.10% |
Data as of June 2024. Expense ratios are subject to change.
Investment Strategy & Screening Process
Ave Maria Funds use a dual-layer screening process:
- Negative Screening: Excludes companies involved in abortion, contraception, embryonic stem cell research, pornography, and same-sex marriage support.
- Positive Screening: Favors firms with strong ethical leadership, fair labor practices, and alignment with Catholic values.
Performance Comparison
Let’s compare the Ave Maria Growth Fund (AVEGX) with a secular counterpart, the Vanguard Growth Index Fund (VIGAX):
| Metric | AVEGX (Ave Maria) | VIGAX (Vanguard) |
|---|---|---|
| 5-Year Annualized Return | 10.2% | 11.5% |
| Expense Ratio | 0.92% | 0.05% |
| Morningstar Rating (2024) | ★★★★ | ★★★★ |
While VIGAX has lower fees, AVEGX has delivered competitive returns while adhering to strict moral guidelines—a trade-off some Catholic investors are willing to accept.
Who Should Invest in Ave Maria Funds?
- Catholic investors seeking faith-aligned portfolios.
- ESG-conscious investors who prioritize moral screening.
- Long-term investors comfortable with slightly higher expense ratios.
Potential Drawbacks
- Higher fees than index funds.
- Limited diversification in some sectors due to screening.
- Performance may lag in industries excluded for moral reasons (e.g., healthcare, tech).
Final Thoughts
Ave Maria Mutual Funds provide a viable option for investors who want their money to reflect their faith. While they may not always outperform secular funds, their ethical screening and solid track record make them worth considering for faith-based portfolios.
