Ave Maria Funds Review: Top Mutual Funds, Returns & Ethical Investing

This review covers everything you
need to know about Ave Maria Mutual Funds from how their Catholic screening
process works, to the performance track record of each fund, expense ratios,
and how they stack up against conventional alternatives.

What Are Ave Maria Funds?

Ave Maria Funds is a U.S.
mutual fund family that screens investments based on both financial merit and
the moral teachings of the Roman Catholic Church. This approach is typically
referred to as morally responsible investing (MRI) or faith-based investing,
and is broadly related to the larger universe of socially responsible investing
(SRI).

The fund family was established
with the idea of placing equal emphasis on investment performance and moral
criteria when selecting securities. The result is a portfolio that excludes
companies whose practices conflict with Catholic doctrine while still
pursuing competitive financial returns for shareholders.

The Catholic Advisory Board

A key feature distinguishing Ave
Maria Mutual Funds from secular funds is its Catholic Advisory Board (CAB).
This board composed of lay Catholic leaders, clergy, and notable public
figures sets the criteria by which companies are screened. Members have
included prominent names such as Lou Holtz, Larry Kudlow, Raymond Arroyo, Tom
Monaghan (founder of Domino’s Pizza and Ave Maria University), and Michael
Knowles.

The board is guided by the
magisterium of the Catholic Church and actively seeks input from Catholic
clergy. Their role is not to manage the portfolio directly, but to define the
moral boundaries within which Schwartz Investment Counsel makes investment
decisions.

How Does the Ethical Screening Process
Work?

The Ave Maria screening process generally operates in two stages:

1. The investment team at Schwartz Investment Counsel evaluates companies based on traditional financial metrics, things like revenue growth, earnings quality, balance sheet strength, and valuation. Financial analysis first.
2. Companies that pass financial scrutiny are then evaluated against religious criteria established by the Catholic Advisory Board. Those who fail are excluded from the portfolio. Moral screening second.

Companies are typically excluded if they are involved in any of the following:

• Abortion – including pharmaceutical companies that manufacture abortifacients
• Embryonic stem cell research
• Pornography distribution
• Donations to or affiliations with Planned Parenthood
• Practices perceived as undermining the sacrament of marriage
• Contraception manufacturing

A 2017 peer-reviewed study
published in the Journal of Applied Business and Economics found that
faith-based investing, including the Ave Maria funds, does not underperform
conventional or ESG funds when controlling for fund size and asset allocation
tendencies. This suggests that the moral screening process does not inherently
create a performance penalty, though past results are not indicative of future
performance.

Overview of All Ave Maria Funds

As of 2025, Ave Maria offers seven
funds covering a range of investment objectives and asset classes. Here is a
snapshot of each fund:

In addition, the fund family
offers the Ave Maria Money Market Account, managed by Pittsburgh-based
Federated Investors, and an Ave Maria Separately Managed Account (SMA) product
launched in 2009.

Detailed Fund Profiles & Returns

Below is an in-depth look at each
of the major Ave Maria Funds, including their investment philosophy,
notable characteristics, and available historical performance data.

1. Ave Maria Rising Dividend Fund (AVEDX) – Flagship Fund

The Rising Dividend Fund is the
flagship fund of the Ave Maria family and the largest by assets under
management. Its primary objective is to seek increasing dividend income over
time, combined with long-term growth of capital.

Under normal circumstances, the
fund invests at least 80% of its net assets in dividend-paying common stocks of
companies that are expected to grow their dividends over time and that pass
the fund’s moral screens. The investment advisor favors companies with strong
free cash flow, low debt, consistent earnings, and a track record of dividend
growth.

2. Ave Maria Growth Fund (AVEGX)

The Growth Fund is one of the
oldest Ave Maria funds, having launched in 2001. It primarily invests in common
stocks of companies that the investment advisor believes offer above-average
potential for growth in revenues, profits, or cash flow. Dividend and interest
income are secondary considerations in this fund.

The fund can invest across market
capitalizations, including small, mid, and large-cap stocks, though it is
often classified in the mid-cap growth space. The portfolio tends to reflect a
buy-and-hold orientation, with a notably low turnover ratio.

Source: Yahoo
Finance, U.S. News. Past performance is not indicative of future results.

3. Ave Maria Value Fund (AVEMX)

The Value Fund targets undervalued
stocks of companies that the investment team believes are trading below their
intrinsic worth. Like all Ave Maria funds, it applies both financial analysis
and Catholic moral screens before making investment decisions. It tends to
favor companies with low debt, stable earnings, and attractive valuations
relative to their sector peers.

The fund’s universe typically
leans toward large-cap value stocks, making it potentially suitable as a core
holding for conservative equity investors seeking morally screened exposure.

4. Ave Maria Bond Fund (AVEFX)

The Bond Fund is designed for
investors seeking income and capital preservation. It focuses on
investment-grade corporate bonds and has demonstrated consistency in its
returns. Notably, the fund has received prestigious recognition for its track
record.

The Bond Fund outpaced its
benchmark in 2024 as well, making it one of the stronger performers in the Ave
Maria lineup in recent years on a risk-adjusted basis.

5. Ave Maria World Equity Fund (AVEWX)

The World Equity Fund provides
exposure to global equities, applying Catholic moral screens to an
international universe of stocks. This fund may appeal to investors seeking
geographic diversification beyond the United States while maintaining their
faith-based investing criteria. It is classified in the world large-blend
category.

6. Ave Maria Growth Focused Fund (AVEAX)

The Growth Focused Fund employs a
more concentrated strategy within the large-growth space. Rather than holding a
broadly diversified portfolio, this fund typically maintains a smaller number
of high-conviction positions companies with significant growth potential that
also pass the Catholic screening criteria.

7. Ave Maria Value Focused Fund (AVERX)

Formerly known as the Schwartz
Value Focused Fund, this fund was renamed the Ave Maria Value Focused Fund on
May 1, 2025, following regulatory and shareholder approvals. The renaming
aligned the fund fully under the Ave Maria brand and subjected it to the same
moral screens as the other six funds.

The fund delivered an exceptional
2024, gaining approximately 38.71%, finishing in the first percentile of the
Morningstar Mid-Cap Blend Category for the one-year, three-year, and five-year
periods. It holds an Overall five-star Morningstar rating (as rated among 377
funds in the category).

Source: Ave
Maria Mutual Funds, Morningstar. Past performance is not indicative of future
results.

Fund Performance Comparison

In 2024, the U.S. stock market
broadly performed strongly, and most Ave Maria funds participated meaningfully
in those gains. Four of the five equity funds posted double-digit returns, and
the Bond Fund outpaced its benchmark.

Note: Exact
figures for all funds may vary. Data reflects available published reports as of
early 2025. Past performance does not guarantee future results.

Costs, Fees & Account Details

Understanding costs is essential
for evaluating any mutual fund. Ave Maria Funds operate as no-load
funds, meaning investors generally pay no sales commissions or loads when
buying or selling shares. This can be a meaningful advantage compared to load
funds that may charge 3-5% upfront or back-end sales charges.

Expense ratios in the 0.90%-0.91%
range are generally considered moderate higher than low-cost index funds but
within the range typical of actively managed, specialty or faith-based mutual
funds. Investors should weigh these costs against the value of the active
management and moral screening provided.

Ave Maria Funds vs. Conventional
Alternatives

A common question among
prospective investors is how Ave Maria’s performance and features compare to
conventional mutual funds and ESG funds. The following comparison table
highlights some key differentiators:

The 2017 academic study referenced
earlier found that after controlling for fund size and asset allocation,
faith-based funds like Ave Maria did not systematically underperform
conventional or ESG alternatives. However, this is a historical finding and may
not predict future outcomes.

Who Manages Ave Maria Funds?

Ave Maria Funds are managed
by Schwartz Investment Counsel, Inc., a registered investment advisor
established in 1980 by George P. Schwartz, CFA. The firm is headquartered in
Plymouth, Michigan.

The investment process involves a
team of analysts and portfolio managers who conduct rigorous fundamental
research on potential holdings. George P. Schwartz, who serves as Executive
Chairman and Founder, has been a consistent voice in the fund’s annual
commentaries and market outlooks. Timothy S. Schwartz, CFA, serves as lead
portfolio manager on the Value Focused Fund.

The firm’s investment philosophy
is grounded in free-market capitalism, value-oriented analysis, and a
preference for companies with strong balance sheets and durable competitive
advantages. The dual mandate financial performance plus moral criteria is
described as a parallel priority, not a trade-off.

Who Are Ave Maria Funds Best Suited
For?

Ave Maria Funds may be a
particularly strong fit for the following types of investors:

• Practicing Catholics or faith-aligned investors who want their portfolio to reflect their religious values without being forced into underperforming, niche products.
• Long-term, buy-and-hold investors who appreciate active management with low portfolio turnover and a consistent investment philosophy.
• Dividend-focused investors who want growing income streams from a morally screened universe (AVEDX).
• IRA or retirement account investors who are looking to consolidate savings in a values-aligned fund family.
• Investors seeking alternatives to broad ESG investing who find secular ESG criteria misaligned with their personal values.

Key Takeaways

Here is a concise summary of the most important points from this review:

Frequently Asked Questions (FAQs)

1. Are Ave Maria Funds only for Catholics?

Ans. No. While the funds are guided by
Catholic moral principles, they are open to any investor who is comfortable
with the religious screening criteria. Non-Catholics who share similar values
around abortion, pornography, or embryonic stem cell research may also find the
funds aligned with their preferences.

2. Do Ave Maria Mutual Funds underperform because of their screens?

Ans. Not necessarily. A 2017 academic
study found that faith-based funds, including Ave Maria, did not systematically
underperform conventional or ESG funds when controlling for fund size and asset
allocation. The AVERX fund’s top-percentile performance in 2024 further
supports the idea that moral screens do not automatically create a performance
drag though this may vary by market conditions and time period.

3. What is the minimum investment for Ave Maria Funds?

The minimum initial investment is
generally $2,500. Ave Maria Funds can be held in individual accounts,
joint accounts, custodial accounts, traditional IRAs, Roth IRAs, and SEP IRAs.

4. Are Ave Maria Mutual Funds no-load?

Ans. Yes. All Ave Maria Funds
are no-load, meaning there are no sales charges or commissions when purchasing
or redeeming shares. Investors are subject only to the annual expense ratio,
which typically runs around 0.90%-0.91% for equity funds.

5. Does Ave Maria invest in defense companies?

Ans. Yes, unlike many ESG funds, Ave
Maria Mutual Funds generally does not exclude companies in the defense,
alcohol, or tobacco industries. The moral screens are specifically grounded in
Catholic teachings, not broader secular environmental or social frameworks.
L3Harris Technologies, for example, has appeared among AVEDX’s notable
holdings.

6. How can I invest in Ave Maria Funds?

Ans. Investors can open accounts
directly through Ave Maria Mutual Funds at avemariafunds.com or through
authorized brokerage firms and financial intermediaries. For account questions,
you can contact Shareholder Services at 1-888-726-9331.

7. What happened to the Schwartz Value Focused Fund?

Ans. On May 1, 2025, the Schwartz Value
Focused Fund was officially renamed the Ave Maria Value Focused Fund (AVERX)
following regulatory and shareholder approval. The fund’s investment objective,
portfolio management style, and management team remained unchanged. The
renaming brought the fund fully under the Ave Maria brand and subjected it to
the same Catholic moral screens as the other six funds.

Conclusion

Ave Maria Funds represents
a well-established, professionally managed fund family that has demonstrated it
can pursue competitive financial returns while adhering to a clearly defined
set of Catholic moral principles. With approximately $3.8 billion in assets
under management across seven distinct funds, the family offers a range of
options from dividend-focused equity to fixed income for investors of different
risk tolerances and income needs.

The standout performer in recent
history has been the Ave Maria Value Focused Fund (AVERX), which delivered
exceptional results in 2024 and ranks among the top funds in its Morningstar
category over multiple time periods. Meanwhile, the Ave Maria Bond Fund has
earned back-to-back LSEG Lipper Awards for consistent return, adding further
credibility to the fund family’s track record.

For faith-aligned investors
particularly practicing Catholics Ave Maria Mutual Funds may offer a
meaningful way to align investments with values without necessarily
compromising on return potential. That said, as with any investment, past
performance does not guarantee future results, and prospective investors should
review the current fund prospectus, consider their personal financial goals, and
risk tolerance, and consult with a financial advisor if appropriate.