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801 W. Ann Arbor Trail, Suite 244	Plymouth, Michigan	48170
	(Address of principal executive offices)	(Zip code)

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Shareholder Accounts c/o Ultimus Fund Solutions, LLC P.O. Box 46707 Cincinnati, OH 45246 (888) 726-0753

Corporate Offices 3707 W. Maple Road Suite 100 Bloomfield Hills, MI 48301

 

Schwartz Value Fund

Dear Fellow Shareowner:

U.S. equity investors enjoyed another period of generally rising stock prices during the first half of 2014. Stock market weakness in January and early February gave way to rising stock prices as the second quarter came to a close. For the first six months, Schwartz Value Fund (the “Fund”) was up 6.17%, versus 7.27% for the Fund’s benchmark, the Russell 1000 Index.

The Fund’s biggest winner so far in 2014 was the PNC Financial Services Group, Inc. warrants which we purchased about a year ago for $17.49 each. These warrants rose by 46% this year, due to the favorable operating performance of PNC Financial Services Group, Inc. (the Pittsburgh-based banking institution). A number of our oil & gas related holdings have also performed well this year. These businesses are experiencing healthy sales and profit outlooks, as oil prices have risen this year due to increasing global demand and ongoing geopolitical tensions in the Middle East. Covidien plc was another strong performer, as the company agreed to be acquired by Medtronic, Inc. for $93/share, which represented a significant premium to our $53 cost. The Fund’s five best performing securities this year are listed below:

Company	Industry	YTD Return
PNC Financial Services (warrants)	Financial Services	+46.4%
Cimarex Energy Company	Oil & Gas Exploration/Production	+37.1%
Baker Hughes Inc.	Oil & Gas Equipment & Services	+35.4%
Covidien plc	Medical Instruments & Supplies	+33.6%
Devon Energy Corporation	Oil & Gas Exploration/Production	+29.2%

On the negative side, consumer discretionary stocks have sharply underperformed this year. The Fund’s holdings in this sector were no exception, as three of our retail holdings, Coach, Inc., Bed Bath & Beyond Inc., and Rent-A-Center, Inc. have experienced weaker than expected results. These stocks are currently out of favor and appear to be selling very cheaply on several different valuation metrics. Despite the negative near-term outlook for each company, at depressed prices, all three stocks represent superb value in our view. As contrarians, we are willing to look beyond the near-term weakness and have added to each position. Even a minor improvement in operating results could translate into meaningful price appreciation in these shares. The five poorest performers so far this year are:

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Company	Industry	YTD Return
Coach, Inc.	Retail – Consumer Goods	-38.1%
Ultratech, Inc.	Semiconductor Capital Equipment	-23.5%
Biglari Holdings, Inc.	Investment Management	-16.5%
Bed Bath & Beyond Inc.	Retail – Consumer Goods	-14.8%
Rent-A-Center, Inc.	Retail – Specialty	-12.5%

During the past six months, we liquidated several issues, as their stock prices reached our estimate of intrinsic value: Alliant Techsystems, Inc. (ATK), Hewlett-Packard Company (HPQ), Kohl’s Corporation (KSS), Outerwall Inc. (OUTR), and Stryker Corporation (SYK). As the stock market has risen sharply in the past 18 months, the number of new, attractive investment opportunities has diminished. However, we did purchase a few new positions recently that we believe provide the opportunity for significant gains in the future.

•

Barnes & Noble, Inc. (BKS) – Barnes & Noble operates the nation’s largest bookstore chain and also operates NOOK media, its e-book and e-reader business. We believe the stock price is mispriced. The common misconception is that the traditional bookstore business is in rapid decline due to the proliferation of online and digital book sales. In reality however, Barnes & Noble’s bookstore business remains quite profitable and generates strong cash flow. The company’s poor operating results in recent years have been primarily caused by malinvestment in the NOOK business. Fortunately, the NOOK losses have been pared and the company recently announced plans to enhance shareholder value by splitting into two companies – one company will operate the retail bookstores and the other company will operate the college bookstore business and NOOK e-book business.

•

EMC Corporation (EMC) – EMC is a $50 billion market cap, enterprise storage market leader. The company’s growth rate has slowed in recent years, but the business still generates a prodigious amount of free cash flow, which management has wisely allocated toward share repurchases. The balance sheet is solid with no net debt. With the stock price near a 3-year low we initiated a position.

•

Rowan Companies plc (RDC) – Rowan is a mid-cap off-shore oil & gas driller domiciled in the United Kingdom with operations around the world. The off-shore drilling sector is out-of-favor due to oversupply fears which could potentially cause a decline in day rates for off-shore drillers. However, we believe these concerns are overblown and are more than reflected in Rowan’s depressed share price. Historically a shallow water driller, Rowan recently entered the ultra deepwater (UDW) market with one UDW drillship placed into service earlier this year, and three more on the way. Rowan’s newer fleet compared to competitors should provide a significant competitive advantage as off-shore drilling demand increases in the years ahead.

Heading into the second half of the year, economic activity seems to be rebounding from the weather-hampered weakness experienced early in the year. Corporate earnings, buoyed by low interest rates and record profit margins, should set another record this year. Although the Federal Reserve has pursued a reduction in monetary stimulus by curtailing their quantitative easing (QE) program, the Fed has indicated a very accommodative monetary policy for the foreseeable future.

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Despite the seemingly widespread optimism among economists, one has to be concerned about shrinking risk premiums, narrow credit spreads, and soaring junk bond prices. Also disconcerting is the high level of speculative activity in social media, internet, biotech and cloud computing. Further, despite the government’s insistence that inflation is low and subdued, the price of food, energy, healthcare, and financial assets (among other things), have all risen sharply in the past year.

Notwithstanding, we remain optimistic in regard to the Fund’s future investment results. Our style of value investing is not dependent upon macro-economic forecasts. Based on our fundamental research, value driven investment philosophy, the Fund owns a portfolio of securities that we believe will provide above average, long-term investment results. As always, our focus remains on selecting individual securities of well-managed businesses in sound financial condition, that are selling at prices significantly below our estimate of intrinsic value.

Thank you for being a shareholder in the Schwartz Value Fund.

With best regards,

George P. Schwartz, CFA Co-Portfolio Manager	Timothy S. Schwartz, CFA Co-Portfolio Manager

Past performance is not predictive of future performance. Investment results and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data quoted. Performance data, current to the most recent month end, are available by calling the Fund at 1-888-726-0753.

An investor should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. The Fund’s prospectus contains this and other important information. To obtain a copy of the prospectus please visit our website at www.schwartzvaluefund.com or call 1-888-726-0753 and a copy will be sent to you free of charge. Please read the prospectus carefully before you invest.

The Letter to Shareholders seeks to describe some of the Adviser’s current opinions and views of the financial markets. Although the Adviser believes it has a reasonable basis for any opinions or views expressed, actual results may differ, sometimes significantly so, from those expected or expressed.

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SCHWARTZ VALUE FUND
TEN LARGEST EQUITY HOLDINGS
June 30, 2014 (Unaudited)

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Shares			Security Description		Market Value				% of Net Assets
	180,000		Unico American Corporation		$	2,251,800				7.0	%
	18,900		Apple, Inc.			1,756,377				5.4	%
	3,673		Biglari Holdings, Inc.			1,553,569				4.8	%
	30,000		Avnet, Inc.			1,329,300				4.1	%
	40,000		Rowan Companies plc - Class A			1,277,200				3.9	%
	15,000		National Oilwell Varco, Inc.			1,235,250				3.8	%
	12,000		Apache Corporation			1,207,440				3.7	%
	50,000		Barnes & Noble, Inc.			1,139,500				3.5	%
	20,000		Ensco plc - Class A			1,111,400				3.4	%
	55,000		Western Union Company (The)			953,700				2.9	%

ASSET ALLOCATION (Unaudited)

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Sector		% of Net Assets
Consumer Discretionary			12.4	%
Energy			25.5	%
Financials			16.8	%
Health Care			0.8	%
Industrials			1.6	%
Information Technology			19.5	%
Materials			5.6	%
Warrants			2.0	%
Exchange-Traded Funds			2.0	%
Open-End Funds			0.0	%(a)
Money Market Funds, Liabilities in Excess of Other Assets			13.8	%
			100.0	%

(a)	Percentage rounds to less than 0.1%.

 

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SCHWARTZ VALUE FUND
SCHEDULE OF INVESTMENTS
June 30, 2014 (Unaudited)

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COMMON STOCKS — 82.2%		Shares				Market Value
Consumer Discretionary — 12.4%
Diversified Consumer Services — 1.9%
Apollo Education Group, Inc. *			20,000			$	625,000
Hotels, Restaurants & Leisure — 4.8%
Biglari Holdings, Inc. *			3,673				1,553,569
Specialty Retail — 5.5%
Barnes & Noble, Inc. *			50,000				1,139,500
Bed Bath & Beyond, Inc. *			1,000				57,380
Rent-A-Center, Inc.			20,000				573,600
							1,770,480
Textiles, Apparel & Luxury Goods — 0.2%
Coach, Inc.			2,000				68,380
Energy — 25.5%
Energy Equipment & Services — 15.1%
Atwood Oceanics, Inc. *			14,000				734,720
Baker Hughes Incorporated			7,000				521,150
Ensco plc - Class A			20,000				1,111,400
National Oilwell Varco, Inc.			15,000				1,235,250
Rowan Companies plc - Class A			40,000				1,277,200
							4,879,720
Oil, Gas & Consumable Fuels — 10.4%
Apache Corporation			12,000				1,207,440
Cimarex Energy Company			1,000				143,460
Devon Energy Corporation			10,000				794,000
Phillips 66			4,000				321,720
Rosetta Resources, Inc. *			15,000				822,750
Southwestern Energy Company *			2,000				90,980
							3,380,350
Financials — 16.8%
Capital Markets — 2.3%
Bank of New York Mellon Corporation (The)			20,000				749,600
Consumer Finance — 0.7%
EZCORP, Inc.- Class A *			20,000				231,000
Diversified Financial Services — 2.9%
Western Union Company (The)			55,000				953,700

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SCHWARTZ VALUE FUND
SCHEDULE OF INVESTMENTS
(Continued)

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COMMON STOCKS — 82.2% (Continued)		Shares				Market Value
Financials — 16.8% (Continued)
Insurance — 10.9%
Berkshire Hathaway, Inc. - Class A *			4			$	759,602
Progressive Corporation (The)			20,000				507,200
Unico American Corporation *			180,000				2,251,800
							3,518,602
Health Care — 0.8%
Health Care Equipment & Supplies — 0.8%
Covidien plc			3,000				270,540
Industrials — 1.6%
Road & Rail — 1.2%
CSX Corporation			12,000				369,720
Trading Companies & Distributors — 0.4%
NOW, Inc. *			3,750				135,787
Information Technology — 19.5%
Communications Equipment — 1.8%
Cisco Systems, Inc.			23,000				571,550
Electronic Equipment, Instruments & Components — 4.1%
Avnet, Inc.			30,000				1,329,300
IT Services — 1.9%
Teradata Corporation *			15,000				603,000
Semiconductors & Semiconductor Equipment — 1.7%
Ultratech, Inc. *			25,000				554,500
Software — 2.8%
Microsoft Corporation			20,000				834,000
Oracle Corporation			2,000				81,060
							915,060
Technology Hardware, Storage & Peripherals — 7.2%
Apple, Inc.			18,900				1,756,377
EMC Corporation			22,000				579,480
							2,335,857

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SCHWARTZ VALUE FUND
SCHEDULE OF INVESTMENTS
(Continued)

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COMMON STOCKS — 82.2% (Continued)		Shares				Market Value
Materials — 5.6%
Metals & Mining — 5.6%
Barrick Gold Corporation			35,000			$	640,500
Goldcorp, Inc.			20,000				558,200
Kinross Gold Corporation *			150,000				621,000
							1,819,700
Total Common Stocks (Cost $20,204,508)						$	26,635,415

 

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WARRANTS — 2.0%		Shares				Market Value
Financials — 2.0%
Banks — 2.0%
PNC Financial Services Group, Inc. (The) * (Cost $437,198)			25,000			$	646,750

 

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EXCHANGE-TRADED FUNDS — 2.0%		Shares				Market Value
iShares Gold Trust *			10,000			$	128,800
SPDR Gold Shares *			4,000				512,160
Total Exchange-Traded Funds (Cost $544,204)						$	640,960

 

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OPEN-END FUNDS — 0.0% (a)		Shares				Market Value
Sequoia Fund, Inc. * (Cost $8,448)			64			$	14,141

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SCHWARTZ VALUE FUND
SCHEDULE OF INVESTMENTS
(Continued)

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MONEY MARKET FUNDS — 14.0%		Shares				Market Value
Federated Government Obligations Tax-Managed Fund - Institutional Shares, 0.01% (b)			1,497,407			$	1,497,407
Federated Treasury Obligations Fund - Institutional Shares, 0.01% (b)			1,487,408				1,487,408
Federated U.S. Treasury Cash Reserves Fund - Institutional Shares, 0.01% (b)			1,487,407				1,487,407
Invesco Short-Term Investments Trust (The) - Treasury Portfolio - Institutional Class, 0.01% (b)			57,543				57,543
Total Money Market Funds (Cost $4,529,765)						$	4,529,765
Total Investments at Market Value — 100.2% (Cost $25,724,123)						$	32,467,031
Liabilities in Excess of Other Assets — (0.2%)							(74,524	)
Net Assets — 100.0%						$	32,392,507

*	Non-income producing security.

 

(a)	Percentage rounds to less than 0.1%.

 

(b)	The rate shown is the 7-day effective yield as of June 30, 2014.

 

See notes to financial statements.

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SCHWARTZ VALUE FUND
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2014 (Unaudited)

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ASSETS
Investments, at market value (cost of $25,724,123) (Note 1)		$	32,467,031
Receivable for capital shares sold			100
Dividends receivable			7,158
Other assets			8,588
TOTAL ASSETS			32,482,877
LIABILITIES
Payable for capital shares redeemed			5,000
Payable to Adviser (Note 2)			74,763
Payable to administrator (Note 2)			3,540
Other accrued expenses			7,067
TOTAL LIABILITIES			90,370
NET ASSETS		$	32,392,507
NET ASSETS CONSIST OF:
Paid-in capital		$	22,896,312
Accumulated net investment loss			(19,010	)
Accumulated net realized gains from security transactions			2,772,297
Net unrealized appreciation on investments			6,742,908
NET ASSETS		$	32,392,507
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value)			1,069,221
Net asset value, offering price and redemption price per share (Note 1)		$	30.30

See notes to financial statements.

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SCHWARTZ VALUE FUND
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 2014 (Unaudited)

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INVESTMENT INCOME
Dividends (Net of foreign tax of $938)		$	210,882
EXPENSES
Investment advisory fees (Note 2)			148,133
Administration, accounting and transfer agent fees (Note 2)			21,050
Trustees’ fees and expenses (Note 2)			19,193
Legal and audit fees			17,134
Registration and filing fees			8,693
Custodian and bank service fees			3,348
Printing of shareholder reports			3,254
Postage and supplies			2,554
Compliance service fees and expenses (Note 2)			901
Insurance expense			754
Other expenses			4,878
TOTAL EXPENSES			229,892
NET INVESTMENT LOSS			(19,010	)
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains from security transactions			2,772,297
Net change in unrealized appreciation/depreciation on investments			(877,551	)
NET REALIZED AND UNREALIZED GAINS ON INVESTMENTS			1,894,746
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS		$	1,875,736

See notes to financial statements.

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SCHWARTZ VALUE FUND
STATEMENTS OF CHANGES IN NET ASSETS

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		Six Months Ended June 30, 2014 (Unaudited)				Year Ended December 31, 2013
FROM OPERATIONS
Net investment loss		$	(19,010	)		$	(43,290	)
Net realized gains from security transactions			2,772,297				2,262,489
Net realized gains from in-kind redemptions (Note 1)			—				1,247,364
Net change in unrealized appreciation/depreciation on investments			(877,551	)			3,664,716
Net increase in net assets resulting from operations			1,875,736				7,131,279
FROM DISTRIBUTIONS TO SHAREHOLDERS
From net realized gains on investments			—				(579,393	)
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold			151,278				1,580,993
Reinvestment of distributions to shareholders			—				526,246
Payments for shares redeemed			(1,664,842	)			(7,202,098	)
Net decrease in net assets from capital share transactions			(1,513,564	)			(5,094,859	)
TOTAL INCREASE IN NET ASSETS			362,172				1,457,027
NET ASSETS
Beginning of period			32,030,335				30,573,308
End of period		$	32,392,507			$	32,030,335
ACCUMULATED NET INVESTMENT LOSS		$	(19,010	)		$	—
SUMMARY OF CAPITAL SHARE ACTIVITY
Shares sold			5,285				62,146
Shares issued in reinvestment of distributions to shareholders			—				18,523
Shares redeemed			(58,248	)			(270,322	)
Net decrease in shares outstanding			(52,963	)			(189,653	)
Shares outstanding, beginning of period			1,122,184				1,311,837
Shares outstanding, end of period			1,069,221				1,122,184

See notes to financial statements.

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SCHWARTZ VALUE FUND
FINANCIAL HIGHLIGHTS

Per Share Data for a Share Outstanding Throughout Each Period

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		Six Months Ended June 30, 2014 (Unaudited)				Year Ended Dec. 31, 2013				Year Ended Dec. 31, 2012				Year Ended Dec. 31, 2011				Year Ended Dec. 31, 2010				Year Ended Dec. 31, 2009
Net asset value at beginning of period		$	28.54			$	23.31			$	22.33			$	21.21			$	19.04			$	14.12
Income (loss) from investment operations:
Net investment income (loss)			(0.02	)			(0.04	)			0.23				0.07				0.11				(0.01	)
Net realized and unrealized gains on investments			1.78				5.80				0.98				1.12				2.17				4.93
Total from investment operations			1.76				5.76				1.21				1.19				2.28				4.92
Less distributions:
From net investment income			—				—				(0.23	)			(0.07	)			(0.11	)			—
From net realized gains on investments			—				(0.53	)			—				—				—				—
Total distributions			—				(0.53	)			(0.23	)			(0.07	)			(0.11	)			—
Net asset value at end of period		$	30.30			$	28.54			$	23.31			$	22.33			$	21.21			$	19.04
Total return (a)			6.2	%(b)			24.7	%			5.4	%			5.6	%			12.0	%			34.8	%
Ratios/Supplementary Data:
Net assets at end of period (000’s)		$	32,393			$	32,030			$	30,573			$	36,654			$	35,161			$	34,369
Ratio of expenses to average net assets			1.47	%(c)			1.45	%			1.41	%			1.38	%			1.43	%			1.55	%
Ratio of net investment income (loss) to average net assets			(0.12	)%(c)			(0.13	%)			0.90	%			0.32	%			0.52	%			(0.07	%)
Portfolio turnover rate			31	%(b)			57	%			62	%			75	%			69	%			73	%

(a)

Total return is a measure of the change in value of an investment in the Fund over the periods covered, which assumes any dividends or capital gains distributions are reinvested in shares of the Fund. Returns shown do not reflect the deduction of taxes a shareholder would pay on Fund distributions or the redemption of Fund shares.

 

(b)	Not annualized.

 

(c)	Annualized.

 

See notes to financial statements.

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1.	Significant Accounting Policies

Schwartz Value Fund (the “Fund”) is a diversified series of Schwartz Investment Trust (the “Trust”), an 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 investment objective of the Fund is to seek long-term capital appreciation. See the Prospectus for information regarding the principal investment strategies of the Fund.

Shares of the Fund are sold at net asset value. To calculate the net asset value, the Fund’s assets are valued and totaled, liabilities are subtracted, and the balance is divided by the number of shares outstanding. The offering price and redemption price per share are equal to the net asset value per share.

The following is a summary of significant accounting policies followed by the Fund:

(a) Valuation of investments — Securities which are traded on stock exchanges, other than NASDAQ, are valued at the closing sales price as of the close of the regular session of trading on the New York Stock Exchange on the day the securities are being valued, or, if not traded on a particular day, at the closing bid price. Securities which are quoted by NASDAQ are valued at the NASDAQ Official Closing Price or, if an official close price is not available, at the most recently quoted bid price. Securities traded in the over-the-counter market are valued at the last reported sales price or, if there is no reported sale on the valuation date, at the most recently quoted bid price. Securities which are traded both in the over-the-counter market and on a stock exchange are valued according to the broadest and most representative market. Investments representing shares of other open-end investment companies are valued at their net asset value as reported by such companies. Securities (and other assets) for which market quotations are not readily available are valued at their fair value as determined in good faith in accordance with consistently applied procedures established by and under the general supervision of the Board of Trustees, and will be classified as Level 2 or 3 within the fair value hierarchy (see below), depending on the inputs used. Fair value pricing may be used, for example, in situations where (i) a portfolio security is so thinly traded that there have been no transactions for that stock over an extended period of time; (ii) the exchange on which the portfolio security is principally traded closes early; or (iii) trading of the portfolio security is halted during the day and does not resume prior to the Fund’s net asset value calculation. A portfolio security’s “fair value” price may differ from the price next available for that portfolio security using the Fund’s normal pricing procedures. Short-term instruments (those with remaining maturities of 60 days or less at the time of purchase) may be valued at amortized cost, which approximates market value.

Accounting principles generally accepted in the United States (“GAAP”) establish a single authoritative definition of fair value, set out a framework for measuring fair value and require additional disclosures about fair value measurements.

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Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below:

The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement.

The following is a summary of the inputs used to value the Fund’s investments, by security type, as of June 30, 2014:

		Level 1				Level 2				Level 3				Total
Common Stocks		$	26,635,415			$	—			$	—			$	26,635,415
Warrants			646,750				—				—				646,750
Exchange-Traded Funds			640,960				—				—				640,960
Open-End Funds			14,141				—				—				14,141
Money Market Funds			4,529,765				—				—				4,529,765
Total		$	32,467,031			$	—			$	—			$	32,467,031

Refer to the Fund’s Schedule of Investments for a listing of the securities by industry type. As of June 30, 2014, the Fund did not have any transfers in and out of any Level. There were no Level 2 or 3 securities or derivative instruments held by the Fund as of June 30, 2014. It is the Fund’s policy to recognize transfers into and out of any Level at the end of the reporting period.

(b) Income taxes — The Fund has qualified and intends to continue to qualify as a regulated investment company under the Internal Revenue Code of 1986 (the “Code”). Qualification generally will relieve the Fund of liability for federal income taxes to the extent 100% of its net investment income and net realized gains are distributed in accordance with the Code. Accordingly, no provision for income tax has been made.

In order to avoid imposition of the excise tax applicable to regulated investment companies, it is also the Fund’s intention to declare as dividends in each calendar year at least 98% of its net investment income and 98.2% of its net realized capital gains plus undistributed amounts from prior years.

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The following information is computed on a tax basis for each item as of June 30, 2014:

Federal income tax cost		$	25,724,123
Gross unrealized appreciation		$	6,951,867
Gross unrealized depreciation			(208,959	)
Net unrealized appreciation			6,742,908
Accumulated ordinary loss			(19,010	)
Other gains			2,772,297
Accumulated earnings		$	9,496,195

During the year ended December 31, 2013, the Fund realized $1,247,364 of net capital gains resulting from in-kind redemptions – in which shareholders who redeemed Fund shares received securities held by the Fund rather than cash. The Fund recognizes a gain on in-kind redemptions to the extent that the value of the distributed securities on the date of redemption exceeds the cost of those securities. Such gains are not taxable to the Fund and are not required to be distributed to shareholders.

The Fund recognizes the tax benefits or expenses of uncertain tax positions only when the position is “more-likely-than-not” to be sustained assuming examination by tax authorities. Management has reviewed the tax positions taken on federal income tax returns for the current and all open tax years (tax years ended December 31, 2010 through December 31, 2013) and has concluded that no provision for unrecognized tax benefits or expenses is required in these financial 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.

(d) Dividends and distributions — Dividends from net investment income and distributions of net capital gains, if any, are declared and paid annually in December. Dividends and distributions to shareholders are recorded on the ex-dividend date. The tax character of distributions paid during the periods ended June 30, 2014 and December 31, 2013 was long-term capital gains.

(e) 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 as of 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.

(f) Common expenses — Common expenses of the Trust are allocated among the Fund and the other series of the Trust based on relative net assets of each series or the nature of the services performed and the relative applicability to each series.

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2.	Investment Advisory Agreement and Transactions with Related Parties

The Chairman and President of the Trust is also the Chairman and Chief Investment Officer of Schwartz Investment Counsel, Inc. (the “Adviser”). Certain other officers of the Trust are officers of the Adviser, or of Ultimus Fund Solutions, LLC (“Ultimus”), the administrative, accounting and transfer agent for the Fund, or of Ultimus Fund Distributors, LLC (the “Distributor”), the Fund’s principal underwriter.

Pursuant to an Investment Advisory Agreement between the Trust 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. The Adviser receives from the Fund a quarterly fee at the annual rate of 0.95% per annum of the Fund’s average daily net assets.

The Chief Compliance Officer of the Trust (the “CCO”) is an employee of the Adviser. The Trust pays the Adviser a fee for providing CCO services, of which the Fund pays its proportionate share along with the other series of the Trust. In addition, the Trust reimburses the Adviser for out-of-pocket expenses incurred, if any, for providing these services.

Pursuant to a Mutual Fund Services Agreement between the Trust and Ultimus, Ultimus 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 these services Ultimus receives fees computed at an annual rate of the daily net assets of the Fund, subject to a minimum monthly fee.

Pursuant to a Distribution Agreement between the Trust and the Distributor, the Distributor serves as the Fund’s exclusive agent for the distribution of its shares. The Distributor is an affiliate of Ultimus.

Trustees and officers affiliated with the Adviser or Ultimus are not compensated by the Trust for their services. Each Trustee who is not an affiliated person of the Adviser or Ultimus receives from the Trust an annual retainer of $26,000 (except that such fee is $32,000 for the Lead Independent Trustee and $13,000 for any Emeritus Trustee), payable quarterly, and a fee of $4,750 for attendance at each meeting of the Board of Trustees (except that such fee is $2,375 for any Emeritus Trustee), plus reimbursement of travel and other expenses incurred in attending meetings.

3.	Investment Transactions

During the six months ended June 30, 2014, cost of purchases and proceeds from sales and maturities of investment securities, excluding short-term investments and U.S. government securities, amounted to $8,883,985 and $12,074,699, respectively.

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4.	Contingencies and Commitments

The Fund indemnifies the Trust’s officers and Trustees for certain liabilities that might arise from their performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts that contain a variety of representations and warranties and which provide general indemnifications. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. However, based on experience, the Fund expects the risk of loss to be remote.

5.	Sector Risk

If a Fund has significant investments in the securities of issuers in industries within a particular sector, any development affecting that sector will have a greater impact on the value of the net assets of the Fund than would be the case if the Fund did not have significant investments in that sector. In addition, this may increase the risk of loss of an investment in the Fund and increase the volatility of the Fund’s net asset value per share. From time to time, circumstances may affect a particular sector and the companies within such sector. For instance, economic or market factors, regulation or deregulation, and technological or other developments may negatively impact all companies in a particular sector and therefore the value of the Fund’s portfolio will be adversely affected. As of June 30, 2014, the Fund had 25.5% of the value of its net assets invested in stocks within the energy sector.

6.	Subsequent Events

The Fund is required to recognize in the financial statements the effects of all subsequent events that provide additional evidence about conditions that existed as of the date of the Statement of Assets and Liabilities. For non-recognized subsequent events that must be disclosed to keep the financial statements from being misleading, the Fund is required to disclose the nature of the event as well as an estimate of its financial effect, or a statement that such an estimate cannot be made. Management has evaluated subsequent events through the issuance of these financial statements and has noted no such events.

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We believe it is important for you to understand the impact of costs on your investment. As a shareholder of the Fund, you incur ongoing costs, including management fees and other Fund expenses. The following examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

A mutual fund’s ongoing costs are expressed as a percentage of its average net assets. This figure is known as the expense ratio. The ongoing costs reflected in the table below are based on an investment of $1,000 made at the beginning of the most recent semi-annual period (January 1, 2014) and held until the end of the period (June 30, 2014).

The table below illustrates the Fund’s ongoing costs in two ways:

Actual fund return – This section helps you to estimate the actual expenses that you paid over the period. The “Ending Account Value” shown is derived from the Fund’s actual return, and the third column shows the dollar amount of operating expenses that would have been paid by an investor who started with $1,000 in the Fund. You may use the information here, together with the amount you invested, to estimate the expenses that you paid over the period.

To do so, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number given for the Fund under the heading “Expenses Paid During Period.”

Hypothetical 5% return – This section is intended to help you compare the Fund’s ongoing costs with those of other mutual funds. It assumes that the Fund had an annual return of 5% before expenses during the period shown, but that the expense ratio is unchanged. In this case, because the return used is not the Fund’s actual return, the result does not apply to your investment. The example is useful in making comparisons because the Securities and Exchange Commission (“SEC”) requires all mutual funds to calculate expenses based on a 5% return. You can assess the Fund’s ongoing costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds.

Note that expenses shown in the table are meant to highlight and help you compare ongoing costs only. The Fund does not charge sales loads or redemption fees.

The calculations assume no shares were bought or sold during the period. Your actual costs may have been higher or lower, depending on the amount of your investment and the timing of any purchases or redemptions.

More information about the Fund’s expenses, including historical annual expense ratios, can be found in this report. For additional information on operating expenses and other shareholder costs, please refer to the Fund’s Prospectus.

	Beginning Account Value January 1, 2014	Ending Account Value June 30, 2014	Expenses Paid During Period*
Based on Actual Fund Return	$1,000.00	$1,061.70	$7.51
Based on Hypothetical 5% Return (before expenses)	$1,000.00	$1,017.50	$7.35

*	Expenses are equal to the Fund’s annualized expense ratio of 1.47% for the period, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

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At an in-person meeting held on February 5, 2014, the Board of Trustees, including the Independent Trustees voting separately, approved the continuation of the Schwartz Value Fund’s (the “Fund”) Advisory Agreement with Schwartz Investment Counsel, Inc (the “Adviser”).

The Independent Trustees were advised and assisted throughout the process of their evaluation by independent legal counsel experienced in matters relating to the investment management industry. The Independent Trustees received advice from their independent counsel, including a legal memorandum, on the standards and obligations in connection with their consideration of the continuation of the Advisory Agreement. The Trustees also received and reviewed relevant information provided by the Adviser in response to requests of the Independent Trustees and their legal counsel to assist in their evaluation of the terms of the Advisory Agreement, including whether the Advisory Agreement continues to be in the best interests of the Fund and its shareholders. The Trustees reviewed, among other things: (1) industry data comparing the advisory fees and expense ratio of the Fund with those of comparable investment companies and any institutional accounts under the management of the Adviser; (2) comparative performance information; (3) the Adviser’s revenues for providing services to the Fund; and (4) information about the Adviser’s portfolio managers, investment process, compliance program and risk management processes.

The Independent Trustees took into account that they meet with the portfolio manager of the Fund at regularly scheduled meetings over the course of the year to discuss the portfolio positioning, portfolio composition, and investment program for the Fund. They also considered that they receive at regularly scheduled meetings reports on the Fund’s investment results and the returns of comparative market indices. The Trustees considered various factors, among them:

•

the nature, extent and quality of the services provided by the Adviser;

•

the fees charged for those services and the Adviser’s profitability with respect to the Fund (and the methodology by which such profitability was calculated);

•

the Fund’s performance;

•

the extent to which economies of scale may be realized as the Fund grows; and

•

whether current fee levels reflect these economies of scale for the benefit of the Fund’s shareholders.

Prior to voting, the Independent Trustees discussed the continuance of the Advisory Agreement with management and also met in executive session with their independent legal counsel at which no representatives of the Adviser were present.

In their consideration of the nature and quality of services provided to the Fund, the Trustees evaluated the responsibilities of the Adviser under the Advisory Agreement and the investment management process applied to the Fund. The Trustees reviewed the background, education and experience of the Adviser’s key investment, research and operational personnel. The Trustees considered the overall strength and stability of the Adviser and the arrangements that have been made by the Adviser to address succession

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planning. The Trustees discussed and considered the quality of administrative and other services provided to the Fund, the Adviser’s compliance program, and the Adviser’s role in coordinating such services and programs.

The Trustees reviewed the advisory fees paid by the Fund under the Advisory Agreement and compared such fees to the advisory fees paid by similar mutual funds as compiled by Morningstar, Inc. (“Morningstar”). The Trustees also compared the total operating expense ratio of the Fund with expense ratios of representative funds with similar investment objectives considered to be within its Morningstar peer group. In considering the Fund’s advisory fee, the Trustees evaluated the Adviser’s investment management capabilities within the context of the financial markets and the Fund’s long-term investment goals. The Trustees concluded that, based upon the investment strategies of the Fund and the quality of services provided by the Adviser, the advisory fees paid by the Fund are reasonable.

The Trustees reviewed the Adviser’s analysis of its profitability in managing the Fund during the period ended November 30, 2013, including the methodology by which that profitability analysis was calculated. The Trustees considered that the Adviser may receive, in addition to the advisory fee, certain indirect benefits from serving as the Fund’s investment adviser, including various research services as a result of the placement of the Fund’s portfolio brokerage. The Trustees considered the costs of the Adviser to provide ongoing services to the Fund, including staffing costs and costs to maintain systems and resources that support portfolio trading, research and other portfolio management functions. Based upon their review of the financial statements of the Adviser, the Trustees concluded that the Adviser possesses the resources necessary to retain qualified professionals to support the research, advisory and administrative operations of the Fund.

The Trustees considered both the short-term and long-term investment results of the Fund in light of its primary objective of seeking long-term capital appreciation. The Trustees considered the Fund’s historical performance over various periods ended November 30, 2013, as it compared to the returns of relevant indices. Based upon their review, the Trustees observed that the Fund’s return for each of the one-year, three-year, five-year and ten-year periods ended November 30, 2013 was below the returns of both the Russell 1000 Index (representative of the large-cap segment of the U.S. equity universe) and the S&P 500 Index (an index of 500 stocks in the U.S. equity universe) over those same periods. The Trustees considered the risk characteristics of the Fund and the Adviser’s low risk, value-oriented investment process. The Trustees took note that the Adviser’s conservative approach to stock selections was unable to keep pace with the strong returns of the broader Russell 1000 Index and the S&P 500 Index during the one-year period ended November 30, 2013. In view of all the factors considered, the Trustees concluded that the Fund’s investment results have been satisfactory and the quality of the services provided by the Adviser combined with its long-term record of managing the Fund supports their view that its continued management should benefit the Fund and its shareholders.

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The Trustees considered the existence of any economies of scale and whether those would be passed along to the Fund’s shareholders. Given the Fund’s current asset levels, the Trustees concluded that it would not be relevant to consider the extent to which economies of scale are being realized and that it is not necessary or appropriate at this time to consider adding fee breakpoints to the advisory fee schedule for the Fund.

In approving the Advisory Agreement, the Independent Trustees reached the following additional conclusions: (i) the Fund’s performance over the past year has been satisfactory; (ii) the nature, extent and quality of services provided by the Adviser are satisfactory; (iii) the advisory fees and total expenses of the Fund are competitive with comparably managed mutual funds and are acceptable, and the profits of the Adviser are reasonable and represent a fair and entrepreneurial profit in light of the quality and scope of services that are provided to the Fund; (iv) the Adviser has demonstrated its commitment to providing shareholders with additional opportunities to participate in economies of scale by previously reducing the advisory fee rate of the Fund; and (v) that it was not relevant to consider the extent to which economies of scale are being realized at the Fund’s current net assets.

No single factor was considered in isolation or to be determinative to the decision of the Trustees to approve the continuance of the Advisory Agreement. Rather, the Trustees concluded, in light of a weighing and balancing of all factors considered, that it would be in the best interests of the Fund and its shareholders to renew the Advisory Agreement for an additional annual period.

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A description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge upon request by calling toll-free (888) 726-0753, or on the SEC’s website at http://www.sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is also available without charge upon request by calling toll-free (888) 726-0753, or on the SEC’s website at http://www.sec.gov.

The Trust files a complete listing of portfolio holdings for the Fund with the SEC as of the end of the first and third quarters of each fiscal year on Form N-Q. The filings are available free of charge, upon request, by calling (888) 726-0753. Furthermore, you may obtain a copy of the filings on the SEC’s website at http://www.sec.gov. The Trust’s Forms N-Q may also be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330.

Schwartz Value Fund (the “Fund”) seeks long-term capital appreciation through value investing – purchasing shares of strong, growing companies at reasonable prices. The Fund invests in companies of all sizes from large-caps to micro-caps. Fundamental analysis is used to identify companies with outstanding business characteristics. Sometimes the best values are issues not followed closely by Wall Street analysts.

Most value investors buy fair companies at an excellent price. The Fund attempts to buy excellent companies at a fair price. The essence of value investing is finding companies with great business characteristics, which by their nature offer a margin of safety. A truly fine business requires few assets to provide a consistently expanding stream of income. The Fund purchases shares which are temporarily out-of-favor and selling below intrinsic value.

A common thread in the Fund’s investments is that the market price is often below what a corporate or entrepreneurial buyer might be willing to pay for the entire business. The auction nature and the inefficiencies of the stock market are such that the Fund can sometimes buy a minority interest in a fine company at a small fraction of the price per share necessary to acquire the entire company.

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Shareholder Accounts c/o Ultimus Fund Solutions, LLC P.O. Box 46707 Cincinnati, OH 45246 (888) 726-9331

Corporate Offices 3707 W. Maple Road Suite 100 Bloomfield Hills, MI 48301 (248) 644-8500 Fax (248) 644-4250

Dear Fellow Shareholders of:

Ave Maria Catholic Values Fund (AVEMX)

Ave Maria Growth Fund (AVEGX)

Ave Maria Rising Dividend Fund (AVEDX)

Ave Maria Opportunity Fund (AVESX)

Ave Maria World Equity Fund (AVEWX)

Ave Maria Bond Fund (AVEFX)

Ave Maria Money Market Account

With the world in disarray in so many places and the only superpower nation seemingly without leadership, it’s amazing that the United States stock market has done as well as it has so far this year. 2014 is unlikely to produce another 30%+ year like 2013, but it may still be a decent year for the S&P 500 Index  (up 7.14% for the first half). Those with elevated expectations for investment returns this year may be disappointed.

What has kept stock prices generally rising? Continued corporate profit growth, dividend increases, and stock buybacks have certainly helped a lot. In addition, Merger & Aquisition and Private Equity activity, fueled by Federal Reserve (the “Fed”) induced nearly free money, has served as a rocket booster to this bull market. Much has been written about the Fed’s controversial ZIRP (zero interest rate policy). After five years of ZIRP and Quantitative Easing, monetary policy has failed to increase employment, as the labor participation rate in the United States, has never been lower. Moreover, the Fed’s highly stimulative monetary policies have also caused dislocations and disincentives which we believe will have serious unintended consequences, not the least of which is an inflationary outcome. So stay tuned.

An interesting political campaign season will be here soon. One can only hope that more pro-growth Senators can be elected to help thwart the European style socialism and oppressive regulatory environment of this administration. In our view economic growth is the key to job creation and a better standard of living for all Americans. As always, our prayers are for more pro-life politicians to get elected. This will be a critically important election in November 2014. Be sure to vote for the candidates who share your values.

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Over 60,000 people in all 50 states have invested in the Ave Maria Mutual Funds. I’m glad you are one of them.

Sincerely,

 

George P. Schwartz, CFA
Chairman & President

July 31, 2014

Past performance is not predictive of future performance. Investment results and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data quoted. Performance data, current to the most recent month end, is available at the Ave Maria Funds website at www.avemariafunds.com or by calling 1-888-726-9331.

The Letter to Shareholders and the Portfolio Manager Commentaries that follow seek to describe some of the Adviser’s current opinions and views of the financial markets. Although the Adviser believes it has a reasonable basis for any opinions or views expressed, actual results may differ, sometimes significantly so, from those expected or expressed. Keep in mind that the information and opinions cover the period through the date of this report.

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AVE MARIA MUTUAL FUNDS
TABLE OF CONTENTS

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Ave Maria Catholic Values Fund:
Portfolio Manager Commentary	2
Ten Largest Equity Holdings	4
Asset Allocation	4
Schedule of Investments	5
Ave Maria Growth Fund:
Portfolio Manager Commentary	8
Ten Largest Equity Holdings	10
Asset Allocation	10
Schedule of Investments	11
Ave Maria Rising Dividend Fund:
Portfolio Manager Commentary	14
Ten Largest Equity Holdings	16
Asset Allocation	16
Schedule of Investments	17
Ave Maria Opportunity Fund:
Portfolio Manager Commentary	21
Ten Largest Equity Holdings	24
Asset Allocation	24
Schedule of Investments	25
Ave Maria World Equity Fund:
Portfolio Manager Commentary	29
Ten Largest Equity Holdings	31
Asset Allocation	31
Schedule of Investments	32
Summary of Common Stocks by Country	35
Ave Maria Bond Fund:
Portfolio Manager Commentary	36
Ten Largest Holdings	37
Asset Allocation	37
Schedule of Investments	38
Statements of Assets and Liabilities	43
Statements of Operations	45

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AVE MARIA MUTUAL FUNDS
TABLE OF CONTENTS
(Continued)

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Statements of Changes in Net Assets:
Ave Maria Catholic Values Fund	47
Ave Maria Growth Fund	48
Ave Maria Rising Dividend Fund	49
Ave Maria Opportunity Fund	50
Ave Maria World Equity Fund	51
Ave Maria Bond Fund	52
Financial Highlights:
Ave Maria Catholic Values Fund	53
Ave Maria Growth Fund	54
Ave Maria Rising Dividend Fund	55
Ave Maria Opportunity Fund	56
Ave Maria World Equity Fund	57
Ave Maria Bond Fund	58
Notes to Financial Statements	59
About Your Funds’ Expenses	70
Other Information	73
Approval of Advisory Agreements	74

This report is for the information of the shareholders of the Ave Maria Mutual Funds. To obtain a copy of the prospectus, please visit our website at www.avemariafunds.com or call 1-888-726-9331 and a copy will be sent to you free of charge. Please read the prospectus carefully before you invest. The Ave Maria Mutual Funds are distributed by Ultimus Fund Distributors, LLC.

Past performance is not predictive of future performance. Investment results and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data quoted. Performance data, current to the most recent month end, is available at the Ave Maria Mutual Funds website at www.avemariafunds.com or by calling 1-888-726-9331.

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AVE MARIA CATHOLIC VALUES FUND
PORTFOLIO MANAGER COMMENTARY
(Unaudited)

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Dear Fellow Shareholder:

The Ave Maria Catholic Value Fund (the “Fund”) had a total return of 3.77% for the six months ended June 30, 2014. The return for the S&P 500 Index was 7.14%.

Since inception on May 1, 2001, the cumulative and annualized returns for the Fund compared to its benchmark were:

	Since 5-01-01 Inception through 6-30-14 Total Returns
	Cumulative	Annualized
Ave Maria Catholic Values Fund (AVEMX)	175.07%	7.99%
S&P 500 Index	100.79%	5.44%

Notwithstanding the first quarter weather-induced 2.9% GDP decline in this country, the world’s economies, led by the United States, are slowly returning to more normal growth six years after the global financial crisis. Unemployment has dropped to 6.1%, wages are rising and household debt is declining. Core inflation, as measured by the government, is near 2%, and the Fed’s asset purchase program is winding down. Even so, monetary policy remains very accommodative and looks to remain that way through at least year end. Corporate profits continue to grind higher and overall sentiment remains complacent. With interest rates near all-time lows and the last bear market fading from investors’ collective memory, equities continue to gain favor. There appears to be no viable alternative for generating long-term positive real returns. It seems “slow and steady” wins the race.

Conditions would appear to be nearly ideal for stocks, but we know that they won’t last forever. Inflation will likely accelerate soon. Food and energy prices have moved up, and labor costs, which are near all-time lows as a percent of corporate revenues, will eventually rise, putting pressure on profits. At some point the Fed will tighten policy and higher interest rates will also hurt profit margins. These events normally happen in the latter part of the economic cycle. No one knows how long this cycle will last, but this is the fifth year of recovery. Perhaps because of the slow recovery, this will be an extended cycle. This is the sixth year of the equity bull market, already longer than most. Hopefully it also will be extended, but the market’s strong performance makes us prudently cautious.

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AVE MARIA CATHOLIC VALUES FUND
PORTFOLIO MANAGER COMMENTARY
(Unaudited) (Continued)

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During the first six months of this year the Fund initiated five new stock positions. Two in the energy sector: Peabody Energy Corporation (coal) and Rowan Companies plc. (offshore drilling) Both of these issues are deeply depressed and trade very cheaply on normalized earnings, which should improve as demand returns. Additional new positions were: Abbott Laboratories (medical products), Knowles Corporation (electronic components) which was recently spun out of Dover Corporation, and Barnes & Noble, Inc. (book retailing) where profitability should improve with outsourcing the production of its Nook electronic reader to Samsung. All of these companies comply with the Ave Maria Funds’ moral screens.

Nine stocks were eliminated from the Fund: Ryland Group, Inc. (homebuilding), General Cable Corporation (wire & cable manufacturing), Bank of New York Mellon Corporation, MasterCard, Inc., AbbVie, Inc. (pharmaceuticals), Patterson Companies, Inc. (dental and veterinary supplies), Genuine Parts Company (automotive and industrial parts distribution), Joy Global, Inc. (mining machinery), and International Business Machines Corporation (technology).

Stocks which contributed positively to Fund performance year to date were: Halliburton Company and Anadarko Petroleum Corporation (energy), Covidien plc (medical devices), Advance Auto Parts, Inc. (distribution) and Hewlett-Packard Company (technology). Stocks performing the worst were: GNC Holdings, Inc., (nutritional supplements), Coach, Inc. (luxury retail), Teradata Corporation (technology), Chico’s FAS, Inc. (women’s apparel retail), and Crocs, Inc. (footwear).

Thank you for your continued commitment to the Fund.

 

George P. Schwartz, CFA	Gregory R. Heilman, CFA
Co-Portfolio Manager	Co-Portfolio Manager

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AVE MARIA CATHOLIC VALUES FUND
TEN LARGEST EQUITY HOLDINGS
June 30, 2014 (Unaudited)

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Shares			Company		Market Value				% of Net Assets
	170,000		Halliburton Company		$	12,071,700				4.7	%
	225,000		Teradata Corporation			9,045,000				3.5	%
	80,000		Anadarko Petroleum Corporation			8,757,600				3.4	%
	500,000		Chico's FAS, Inc.			8,480,000				3.3	%
	110,000		Fluor Corporation			8,459,000				3.3	%
	70,000		United Technologies Corporation			8,081,500				3.2	%
	165,000		Lowe's Companies, Inc.			7,918,350				3.1	%
	300,000		EMC Corporation			7,902,000				3.1	%
	90,000		Phillips 66			7,238,700				2.8	%
	80,000		Covidien plc			7,214,400				2.8	%

ASSET ALLOCATION (Unaudited)

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Sector		% of Net Assets
Consumer Discretionary			23.7	%
Energy			16.9	%
Financials			14.4	%
Health Care			11.8	%
Industrials			8.4	%
Information Technology			12.1	%
Materials			1.7	%
Warrants			1.1	%
Exchange-Traded Funds			1.4	%
Money Market Funds, Liabilities in Excess of Other Assets			8.5	%
			100.0	%

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AVE MARIA CATHOLIC VALUES FUND
SCHEDULE OF INVESTMENTS
June 30, 2014 (Unaudited)

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COMMON STOCKS — 89.0%		Shares				Market Value
Consumer Discretionary — 23.7%
Auto Components — 0.9%
Gentex Corporation			75,000			$	2,181,750
Diversified Consumer Services — 2.1%
Apollo Education Group, Inc. *			175,000				5,468,750
Household Durables — 2.2%
PulteGroup, Inc.			275,000				5,544,000
Specialty Retail — 14.5%
Advance Auto Parts, Inc.			50,000				6,746,000
Barnes & Noble, Inc. *			300,000				6,837,000
Chico's FAS, Inc.			500,000				8,480,000
GNC Holdings, Inc. - Class A			210,000				7,161,000
Lowe's Companies, Inc.			165,000				7,918,350
							37,142,350
Textiles, Apparel & Luxury Goods — 4.0%
Coach, Inc.			45,000				1,538,550
Crocs, Inc. *			350,000				5,260,500
VF Corporation			55,000				3,465,000
							10,264,050
Energy — 16.9%
Energy Equipment & Services — 6.0%
Halliburton Company			170,000				12,071,700
Rowan Companies plc - Class A			100,000				3,193,000
							15,264,700
Oil, Gas & Consumable Fuels — 10.9%
Anadarko Petroleum Corporation			80,000				8,757,600
Devon Energy Corporation			60,000				4,764,000
Peabody Energy Corporation			175,000				2,861,250
Phillips 66			90,000				7,238,700
Range Resources Corporation			50,000				4,347,500
							27,969,050
Financials — 14.4%
Banks — 4.2%
PNC Financial Services Group, Inc. (The)			65,000				5,788,250
U.S. Bancorp			115,000				4,981,800
							10,770,050
Capital Markets — 1.9%
Federated Investors, Inc. - Class B			160,000				4,947,200
Diversified Financial Services — 2.7%
Western Union Company (The)			400,000				6,936,000

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AVE MARIA CATHOLIC VALUES FUND
SCHEDULE OF INVESTMENTS
(Continued)

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COMMON STOCKS — 89.0% (Continued)		Shares				Market Value
Financials — 14.4% (Continued)
Insurance — 4.5%
Alleghany Corporation *			7,500			$	3,285,900
Reinsurance Group of America, Inc.			60,000				4,734,000
Unico American Corporation * #			282,945				3,539,642
							11,559,542
Real Estate Management & Development — 1.1%
Kennedy-Wilson Holdings, Inc.			100,000				2,682,000
Health Care — 11.8%
Health Care Equipment & Supplies — 11.0%
Abbott Laboratories			175,000				7,157,500
Covidien plc			80,000				7,214,400
St. Jude Medical, Inc.			100,000				6,925,000
Stryker Corporation			40,000				3,372,800
Varian Medical Systems, Inc. *			40,000				3,325,600
							27,995,300
Life Sciences Tools & Services — 0.8%
Waters Corporation *			20,000				2,088,800
Industrials — 8.4%
Aerospace & Defense — 3.2%
United Technologies Corporation			70,000				8,081,500
Construction & Engineering — 3.3%
Fluor Corporation			110,000				8,459,000
Machinery — 1.9%
Caterpillar, Inc.			45,000				4,890,150
Information Technology — 12.1%
Electronic Equipment, Instruments & Components — 0.9%
Knowles Corporation *			75,000				2,305,500
IT Services — 5.9%
Accenture plc - Class A			75,000				6,063,000
Teradata Corporation *			225,000				9,045,000
							15,108,000
Technology Hardware, Storage & Peripherals — 5.3%
EMC Corporation			300,000				7,902,000
Hewlett-Packard Company			165,000				5,557,200
							13,459,200

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AVE MARIA CATHOLIC VALUES FUND
SCHEDULE OF INVESTMENTS
(Continued)

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COMMON STOCKS — 89.0% (Continued)		Shares				Market Value
Materials — 1.7%
Chemicals — 1.7%
FMC Corporation			60,000			$	4,271,400
Total Common Stocks (Cost $158,440,374)						$	227,388,292

 

---

WARRANTS — 1.1%		Shares				Market Value
Financials — 1.1%
Banks — 1.1%
PNC Financial Services Group, Inc. (The) * (Cost $1,908,572)			110,000			$	2,845,700

 

---

EXCHANGE-TRADED FUNDS — 1.4%		Shares				Market Value
iShares Gold Trust * (Cost $4,769,042)			275,000			$	3,542,000

 

---

MONEY MARKET FUNDS — 8.7%		Shares				Market Value
Federated Government Obligations Tax-Managed Fund - Institutional Shares, 0.01% (a)			12,174,435			$	12,174,435
Federated Treasury Obligations Fund - Institutional Shares, 0.01% (a)			10,033,692				10,033,692
Total Money Market Funds (Cost $22,208,127)						$	22,208,127
Total Investments at Market Value — 100.2% (Cost $187,326,115)						$	255,984,119
Liabilities in Excess of Other Assets — (0.2%)							(500,504	)
Net Assets — 100.0%						$	255,483,615

*	Non-income producing security.

 

#	The Fund owned 5% or more of the company's outstanding voting shares thereby making the company an affiliated company as that term is defined in the Investment Company Act of 1940 (Note 5).

 

(a)	The rate shown is the 7-day effective yield as of June 30, 2014.

 

See notes to financial statements.

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AVE MARIA GROWTH FUND
PORTFOLIO MANAGER COMMENTARY
(Unaudited)

---

 

Dear Fellow Shareholders:

For the first six months of 2014, the Ave Maria Growth Fund (the “Fund”) had a total return of -0.17% versus 7.14% for the S&P 500 Index. Our stock selection and industry concentrations during the period were out of step with the broader market. During this period, the Fund was underweight the technology sector, which had a terrific short-term bounce. As portfolio managers, we keep the Fund’s long-term orientation foremost in our minds and don’t expect to outperform the market in every period. Several portfolio holdings did perform very well and reached our appraisal of their intrinsic value. So we’ve taken profits resulting in a higher level of cash equivalents (10.8%) than usual. Consequently, portfolio turnover during the first six months of 2014 rose to 19%, which compares with portfolio turnover of 18% for all of 2013.

Year to date positive performance came from C.H. Robinson Worldwide, Inc. (third party logistics), Schlumberger Limited (oilfield services), and Occidental Petroleum Corporation (oil and gas exploration and production). Negative performance came from MasterCard, Inc. (transaction processing), Polaris Industries, Inc. (all-terrain vehicles), Ross Stores, Inc. (specialty retailer), and Coach, Inc. (luxury consumer goods). We exited the Coach position, concluding that the company’s turnaround strategy is likely to take many years and entails significant execution risk.

New investments during the first six months of the year included Abbott Laboratories (healthcare), PetSmart, Inc. (specialty retail), Qualcomm Incorporated (integrated circuits), Schlumberger Limited (oilfield services), and Wolverine World Wide, Inc. (footwear). We believe Abbott Laboratories is well positioned to grow its revenue, earnings and dividends due to its strong balance sheet, attractive business mix, emerging markets exposure, and margin improvement opportunities. PetSmart, with a free cash flow yield of 6.6%, benefits from non-discretionary demand, a large mix of consumable products, and an affluent customer base. Qualcomm is a wide moat business as the clear leading in wireless chips and a near monopoly in CDMA (3G) technology. Current royalty collection challenges in China provide an attractive entry point. Schlumberger, the world’s largest oilfield services company along with a robust R&D budget, will benefit as it becomes more difficult for its customer to find and extract oil and natural gas. We believe Wolverine Worldwide, with well-established brands including Sperry, Merrell, Keds, and Saucony, among others, can grow revenue at nearly 10% and EPS at twice that rate. International expansion of its larger brands will be a major contributor to growth.

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AVE MARIA GROWTH FUND
PORTFOLIO MANAGER COMMENTARY
(Unaudited) (Continued)

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We remain disciplined in our stock selection strategy, which includes paying what we consider reasonable prices for shares of exceptional companies with durable competitive advantages. Your investment in the Ave Maria Growth Fund is appreciated.

With best regards,

 

George P. Schwartz, CFA	Richard L. Platte, Jr., CFA
Co-Portfolio Manager	Co-Portfolio Manager

---

AVE MARIA GROWTH FUND
TEN LARGEST EQUITY HOLDINGS
June 30, 2014 (Unaudited)

---

Shares			Company		Market Value				% of Net Assets
	241,400		Cognizant Technology Solutions Corporation - Class A		$	11,806,874				4.1	%
	95,000		Schlumberger Limited			11,205,250				3.9	%
	85,000		Polaris Industries, Inc.			11,070,400				3.9	%
	111,700		Amphenol Corporation - Class A			10,761,178				3.8	%
	142,000		MasterCard, Inc. - Class A			10,432,740				3.6	%
	336,250		Rollins, Inc.			10,087,500				3.5	%
	192,600		AMETEK, Inc.			10,069,128				3.5	%
	70,000		C.R. Bard, Inc.			10,010,700				3.5	%
	120,000		Graco, Inc.			9,369,600				3.3	%
	112,000		Varian Medical Systems, Inc.			9,311,680				3.3	%

ASSET ALLOCATION (Unaudited)

---

Sector		% of Net Assets
Consumer Discretionary			16.1	%
Consumer Staples			3.1	%
Energy			7.1	%
Financials			3.6	%
Health Care			16.8	%
Industrials			27.0	%
Information Technology			15.6	%
Money Market Funds, Liabilities in Excess of Other Assets			10.7	%
			100.0	%

---

AVE MARIA GROWTH FUND
SCHEDULE OF INVESTMENTS
June 30, 2014 (Unaudited)

---

COMMON STOCKS — 89.3%		Shares				Market Value
Consumer Discretionary — 16.1%
Hotels, Restaurants & Leisure — 2.8%
Cracker Barrel Old Country Store, Inc.			80,000			$	7,965,600
Leisure Products — 3.9%
Polaris Industries, Inc.			85,000				11,070,400
Specialty Retail — 7.6%
Buckle, Inc. (The)			150,000				6,654,000
PetSmart, Inc.			100,000				5,980,000
Ross Stores, Inc.			138,000				9,125,940
							21,759,940
Textiles, Apparel & Luxury Goods — 1.8%
Wolverine World Wide, Inc.			200,000				5,212,000
Consumer Staples — 3.1%
Food Products — 3.1%
McCormick & Company, Inc.			122,200				8,748,298
Energy — 7.1%
Energy Equipment & Services — 3.9%
Schlumberger Limited			95,000				11,205,250
Oil, Gas & Consumable Fuels — 3.2%
Occidental Petroleum Corporation			90,000				9,236,700
Financials — 3.6%
Diversified Financial Services — 3.6%
MasterCard, Inc. - Class A			142,000				10,432,740
Health Care — 16.8%
Biotechnology — 3.0%
Amgen, Inc.			73,000				8,641,010
Health Care Equipment & Supplies — 10.7%
Abbott Laboratories			215,000				8,793,500
C.R. Bard, Inc.			70,000				10,010,700
Medtronic, Inc.			40,000				2,550,400
Varian Medical Systems, Inc. *			112,000				9,311,680
							30,666,280
Health Care Providers & Services — 3.1%
Laboratory Corporation of America Holdings *			85,000				8,704,000

---

AVE MARIA GROWTH FUND
SCHEDULE OF INVESTMENTS
(Continued)

---

COMMON STOCKS — 89.3% (Continued)		Shares				Market Value
Industrials — 27.0%
Aerospace & Defense — 3.1%
Precision Castparts Corporation			35,000			$	8,834,000
Air Freight & Logistics — 3.2%
C.H. Robinson Worldwide, Inc.			145,000				9,249,550
Commercial Services & Supplies — 6.5%
Copart, Inc. *			240,000				8,630,400
Rollins, Inc.			336,250				10,087,500
							18,717,900
Electrical Equipment — 3.5%
AMETEK, Inc.			192,600				10,069,128
Industrial Conglomerates — 2.8%
Danaher Corporation			101,500				7,991,095
Machinery — 7.9%
Donaldson Company, Inc.			122,800				5,196,896
Graco, Inc.			120,000				9,369,600
Toro Company (The)			125,000				7,950,000
							22,516,496
Information Technology — 15.6%
Communications Equipment — 0.6%
QUALCOMM, Incorporated			20,000				1,584,000
Electronic Equipment, Instruments & Components — 3.8%
Amphenol Corporation - Class A			111,700				10,761,178
IT Services — 9.5%
Accenture plc - Class A			109,400				8,843,896
Cognizant Technology Solutions Corporation - Class A *			241,400				11,806,874
Teradata Corporation *			165,000				6,633,000
							27,283,770
Semiconductors & Semiconductor Equipment — 1.7%
Altera Corporation			140,000				4,866,400
Total Common Stocks (Cost $162,927,088)						$	255,515,735