UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

George P. Schwartz

 

Registrant's telephone number, including area code:

(248) 644-8500

 

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 the 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. § 3507.

Item 1.

Reports to Stockholders.

 

 

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Schwartz Value Focused Fund

 

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

Investment Adviser Schwartz Investment Counsel, Inc. 801 W. Ann Arbor Trail Suite 244 Plymouth, MI 48170

 

Dear Fellow Shareowners:

 

The Schwartz Value Focused Fund (the “Fund”) had a total return of 1.60% for the six-month period ended June 30, 2017 compared to 8.87% for the S&P 1500 Index and 9.27% for the Russell 1000 Index. The Fund’s underperformance can primarily be attributed to: 1) declining commodity prices and the negative impact on energy-related stocks; 2) value stocks continued underperformance vs. growth stocks; and 3) weakness in small-cap stocks.

 

After a strong year in 2016, our energy-related holdings have performed poorly so far in 2017. Since peaking in early January, oil prices have been on a steady downward trajectory due to a combination of factors, including increased U.S. shale production, weaker than expected global demand, and concerns about the sustainability of OPEC’s ongoing production cuts. While trying to forecast the near-term price of any commodity is a fool’s errand, we believe oil prices are headed higher over time. And we are confident that our high-quality energy related companies are well positioned in the current environment. As mentioned, value stocks, including many of ours, are out of favor. For the first 6 months of 2017, the S&P 500 Value component returned 4.85% compared to 13.32% for the Growth component. Since 2009, growth stocks have vastly outperformed value stocks. We believe value stocks are due. Also, the Fund’s exposure to small-cap companies hurt relative performance, as the S&P 600 Small-Cap Index was up only 2.79% for the first 6 months.

 

The Fund’s five worst performing securities so far this year are as follows:

 

Company	Industry	YTD Return
Devon Energy Corporation	Oil/Gas Exploration and Production	-29.76%
Noble Energy, Inc.	Oil/Gas Exploration and Production	-29.12%
Apache Corporation	Oil/Gas Exploration and Production	-22.41%
Avnet, Inc.	Technology Distribution	-19.39%
Schlumberger Limited	Oil/Gas Equipment and Services	-18.81%

 

The Fund’s best performing stock this year is Liberty Interactive Corporation, which owns and operates QVC Group. QVC is a multinational corporation that sells consumer goods through its television networks and online. As we outlined in last year’s annual report, the stock price had come under pressure due to what we believed were transitory factors and we took advantage by substantially increasing our position earlier this year. Since then, some of the concerns weighing on the stock have alleviated and the share price is up more than 30% YTD. Recently, Liberty Interactive announced its intention to acquire the remaining 62% of HSN, Inc. (owner of The Home Shopping Network) that it did not already own. This merger should produce significant synergies, as the combined companies will dominate the market for TV-based consumer product sales. Even though the stock is up sharply since year-end, we continue to believe the intrinsic value of Liberty Interactive is substantially higher than the current share price. It is now the Fund’s largest holding.

 

1

 

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The Fund’s five best performing securities so far this year are as follows:

 

Company	Industry	YTD Return
Liberty Interactive Corporation	Consumer Retail	+30.23%
Moody’s Corporation	Business Services	+29.97%
AMETEK, Inc.	Diversified Machinery	+25.02%
Graham Holdings Company	Diversified Holding Companies	+17.50%
Axalta Coating Systems Ltd.	Specialty Chemicals	+12.93%

 

During the past six months, we liquidated a number of stocks that had reached our estimate of intrinsic value, including: Baker Hughes, Inc. (oil & gas equipment and services), Colfax Corporation (diversified machinery), Discovery Communications (media), MSC Industrial Direct Co., Inc. (industrial equipment), Nordstrom, Inc. (apparel retailing), and W.W. Grainger, Inc. (industrial equipment). Proceeds from these sales were used to establish new positions in five securities that meet our criteria of owning shares of high-quality businesses run by experienced management teams, in sound financial condition, that are selling at prices below our estimate of intrinsic value:

 

●

Axalta Coating Systems Ltd. (AXTA) – Axalta designs, manufactures, and sells a diverse line of automotive paints and industrial coatings in more than 130 countries. The primary users of its products are automotive repair shops and auto manufacturers. The company holds a dominant market position with the #1 or #2 position in 90% of their product offerings. As such, Axalta generates high profit margins, a high return on invested capital, and substantial free cash flow.

 

●

Brown-Forman Corporation (BFB) – Brown-Forman is engaged in the production and marketing of wine and premium spirits, including its flagship brand, Jack Daniels. This high-quality company has a long history of increasing sales, earnings, and free cash flow. The company generates prodigious cash flow and requires minimal capital expenditures to grow. Free cash is used to repurchase shares and pay dividends, which have been increased every year since 1985.

 

●

Interactive Brokers Group, Inc. (IBKR) – Interactive Brokers is an automated electronic broker in 120 electronic exchanges and market centers worldwide. The company was founded 40 years ago by Thomas Petterfy, a Hungarian immigrant. The company utilizes its technological expertise to be the most efficient, low cost provider in the industry. The company’s competitive advantage is very difficult for competitors to replicate because its automated systems have been built up over many years and consist of thousands of routines covering thousands of individual situations and thousands of securities. We believe the company has a long runway for growth in the years ahead.

 

●

Tractor Supply Company (TSCO) – Tractor Supply operates rural lifestyles stores in the U.S. The company offers a broad selection of unique merchandise in differentiated categories including livestock & pet, hardware & tools, clothing & footwear, agricultural products, seasonal, gifts & toys. Tractor Supply has strong brand equity built by establishing a reputation for superior customer service and by offering high quality products not found at big-box retailers. The company has a strong track record of sales, earnings, and cash flow growth.

 

2

 

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●

Ubiquiti Networks, Inc. (UBNT) – Ubiquiti Networks develops wireless networking technology for service providers, enterprises, and consumers worldwide. The company’s founder, majority owner, and CEO is Robert Pera, a former Apple Inc. engineer. Ubiquiti’s core competency is R&D and product design. The company has a structural, low cost advantage compared to its competitors, in that it has no sales and marketing personnel, no customer support staff, and no manufacturing facilities. With its low cost operation, Ubiquiti is able to undercut competitors on price, yet still generate high margins and high returns on invested capital.

 

The Fund has a contrarian-concentrated, value-oriented approach that has the potential to achieve superior investment returns over the long-term. In our view, the Fund contains a large number of under-valued and under-appreciated stocks, many of which are like coiled springs. We are enthusiastic about the Fund’s future investment prospects. Accordingly, each of us has recently purchased additional shares of this Fund.

 

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

 

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

 

3

 

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SCHWARTZ VALUE FOCUSED FUND
TEN LARGEST EQUITY HOLDINGS
June 30, 2017 (Unaudited)

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Shares			Security Description		Market Value				% of Net Assets
	80,000		Liberty Interactive Corporation QVC Group - Series A		$	1,963,200				9.5	%
	161,030		Unico American Corporation			1,505,631				7.3	%
	50,000		ARRIS International plc			1,401,000				6.8	%
	3,500		Texas Pacific Land Trust			1,028,230				5.0	%
	30,000		Axalta Coating Systems Ltd.			961,200				4.7	%
	70,000		Goldcorp, Inc.			903,700				4.4	%
	20,000		Avnet, Inc.			777,600				3.8	%
	3		Berkshire Hathaway, Inc. - Class A			764,100				3.7	%
	2,000		AMERCO			732,120				3.5	%
	15,000		Brown-Forman Corporation - Class B			729,000				3.5	%

 

ASSET ALLOCATION (Unaudited)

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Sector		% of Net Assets
Consumer Discretionary			23.3	%
Consumer Staples			3.5	%
Energy			4.8	%
Financials			23.9	%
Industrials			7.0	%
Information Technology			18.9	%
Materials			13.4	%
Open-End Funds			0.1	%
Money Market Funds, Liabilities in Excess of Other Assets			5.1	%
			100.0	%

 

4

 

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SCHWARTZ VALUE FOCUSED FUND
SCHEDULE OF INVESTMENTS
June 30, 2017 (Unaudited)

COMMON STOCKS — 94.8%		Shares				Market Value
Consumer Discretionary — 23.3%
Diversified Consumer Services — 4.8%
Graham Holdings Company - Class B			1,000			$	599,650
ServiceMaster Global Holdings, Inc. *			10,000				391,900
							991,550
Household Durables — 2.5%
Garmin Ltd.			10,000				510,300
Internet & Direct Marketing Retail — 9.5%
Liberty Interactive Corporation QVC Group - Series A *			80,000				1,963,200
Media — 2.2%
Liberty Global plc - Series C *			15,000				467,700
Specialty Retail — 4.3%
TJX Companies, Inc. (The)			5,000				360,850
Tractor Supply Company			10,000				542,100
							902,950
Consumer Staples — 3.5%
Beverages — 3.5%
Brown-Forman Corporation - Class B			15,000				729,000
Energy — 4.8%
Energy Equipment & Services — 1.0%
Schlumberger Limited			3,000				197,520
Oil, Gas & Consumable Fuels — 3.8%
Apache Corporation			6,000				287,580
Devon Energy Corporation			7,000				223,790
Noble Energy, Inc.			10,000				283,000
							794,370
Financials — 23.9%
Capital Markets — 5.6%
Interactive Brokers Group, Inc. - Class A			15,000				561,300
Moody's Corporation			5,000				608,400
							1,169,700
Diversified Financial Services — 7.3%
MasterCard, Inc. - Class A			4,000				485,800
Texas Pacific Land Trust			3,500				1,028,230
							1,514,030

5

 

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SCHWARTZ VALUE FOCUSED FUND
SCHEDULE OF INVESTMENTS
(Continued)

COMMON STOCKS — 94.8% (Continued)		Shares				Market Value
Financials — 23.9% (Continued)
Insurance — 11.0%
Berkshire Hathaway, Inc. - Class A *			3			$	764,100
Unico American Corporation *			161,030				1,505,631
							2,269,731
Industrials — 7.0%
Electrical Equipment — 3.5%
AMETEK, Inc.			12,000				726,840
Road & Rail — 3.5%
AMERCO			2,000				732,120
Information Technology — 18.9%
Communications Equipment — 9.3%
ARRIS International plc *			50,000				1,401,000
Ubiquiti Networks, Inc. *			10,000				519,700
							1,920,700
Electronic Equipment, Instruments & Components — 6.4%
Arrow Electronics, Inc. *			7,000				548,940
Avnet, Inc.			20,000				777,600
							1,326,540
IT Services — 3.2%
Cognizant Technology Solutions Corporation - Class A			10,000				664,000
Materials — 13.4%
Chemicals — 4.7%
Axalta Coating Systems Ltd. *			30,000				961,200
Metals & Mining — 8.7%
Barrick Gold Corporation			20,000				318,200
Goldcorp, Inc.			70,000				903,700
Pan American Silver Corporation			35,000				588,700
							1,810,600
Total Common Stocks (Cost $16,352,246)						$	19,652,051

 

OPEN-END FUNDS — 0.1%		Shares				Market Value
Sequoia Fund, Inc. * (Cost $11,438)			81			$	14,266

 

6

 

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SCHWARTZ VALUE FOCUSED FUND
SCHEDULE OF INVESTMENTS
(Continued)

MONEY MARKET FUNDS — 5.2%		Shares				Market Value
Federated Government Obligations Tax-Managed Fund -
Institutional Shares, 0.76% (a)			953,776			$	953,776
Federated Treasury Obligations Fund -
Institutional Shares, 0.83% (a)			121,937				121,937
Total Money Market Funds (Cost $1,075,713)						$	1,075,713
Total Investments at Market Value — 100.1% (Cost $17,439,397)						$	20,742,030
Liabilities in Excess of Other Assets — (0.1%)							(16,140	)
Net Assets — 100.0%						$	20,725,890

 

 

7

 

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SCHWARTZ VALUE FOCUSED FUND
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2017 (Unaudited)

ASSETS
Investments, at market value (cost of $17,439,397) (Note 1)		$	20,742,030
Cash			5,100
Dividends receivable			4,734
Other assets			8,613
TOTAL ASSETS			20,760,477
LIABILITIES
Payable to Adviser (Note 2)			20,369
Payable to administrator (Note 2)			3,000
Other accrued expenses			11,218
TOTAL LIABILITIES			34,587
NET ASSETS		$	20,725,890
NET ASSETS CONSIST OF:
Paid-in capital		$	16,523,660
Accumulated net investment loss			(57,839	)
Accumulated net realized gains from security transactions			957,436
Net unrealized appreciation on investments			3,302,633
NET ASSETS		$	20,725,890
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value)			815,492
Net asset value, offering price and redemption price per share (Note 1)		$	25.42

 

See notes to financial statements.

 

8

 

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SCHWARTZ VALUE FOCUSED FUND
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 2017 (Unaudited)

INVESTMENT INCOME
Dividends (Net of foreign tax of $863)		$	73,047
EXPENSES
Investment advisory fees (Note 2)			99,474
Trustees’ fees and expenses (Note 2)			32,121
Legal and audit fees			21,809
Administration, accounting and transfer agent fees (Note 2)			18,000
Registration and filing fees			7,602
Postage and supplies			4,972
Printing of shareholder reports			3,751
Custodian and bank service fees			3,341
Insurance expense			641
Compliance service fees and expenses (Note 2)			242
Other expenses			4,518
TOTAL EXPENSES			196,471
Less fee reductions by the Adviser (Note 2)			(65,585	)
NET EXPENSES			130,886
NET INVESTMENT LOSS			(57,839	)
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains from security transactions			1,466,693
Net change in unrealized appreciation (depreciation) on investments			(1,079,702	)
NET REALIZED AND UNREALIZED GAINS ON INVESTMENTS			386,991
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS		$	329,152

 

See notes to financial statements.

 

9

 

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SCHWARTZ VALUE FOCUSED FUND
STATEMENTS OF CHANGES IN NET ASSETS

		Six Months Ended June 30, 2017 (Unaudited)				Year Ended December 31, 2016
FROM OPERATIONS
Net investment loss		$	(57,839	)		$	(67,763	)
Net realized gains from security transactions			1,466,693				29,217
Net change in unrealized appreciation (depreciation) on investments			(1,079,702	)			3,288,843
Net increase in net assets resulting from operations			329,152				3,250,297
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold			30,108				1,533,951
Payments for shares redeemed			(645,224	)			(2,544,502	)
Net decrease in net assets from capital share transactions			(615,116	)			(1,010,551	)
TOTAL INCREASE (DECREASE) IN NET ASSETS			(285,964	)			2,239,746
NET ASSETS
Beginning of period			21,011,854				18,772,108
End of period		$	20,725,890			$	21,011,854
ACCUMULATED NET INVESTMENT LOSS		$	(57,839	)		$	—
SUMMARY OF CAPITAL SHARE ACTIVITY
Shares sold			1,178				65,097
Shares redeemed			(25,451	)			(111,549	)
Net decrease in shares outstanding			(24,273	)			(46,452	)
Shares outstanding, beginning of period			839,765				886,217
Shares outstanding, end of period			815,492				839,765

 

See notes to financial statements.

 

10

 

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SCHWARTZ VALUE FOCUSED FUND
FINANCIAL HIGHLIGHTS

Per Share Data for a Share Outstanding Throughout Each Period

		Six Months Ended June 30, 2017 (Unaudited)				Year Ended Dec. 31, 2016				Year Ended Dec. 31, 2015				Year Ended Dec. 31, 2014				Year Ended Dec. 31, 2013				Year Ended Dec. 31, 2012
Net asset value at beginning of period		$	25.02			$	21.18			$	25.06			$	28.54			$	23.31			$	22.33
Income (loss) from investment operations:
Net investment income (loss)			(0.07	)			(0.08	)			(0.11	)			(0.08	)			(0.04	)			0.23
Net realized and unrealized gains (losses) on investments			0.47				3.92				(3.77	)			(1.26	)			5.80				0.98
Total from investment operations			0.40				3.84				(3.88	)			(1.34	)			5.76				1.21
Less distributions:
From net investment income			—				—				—				—				—				(0.23	)
From net realized gains on investments			—				—				—				(2.14	)			(0.53	)			—
Total distributions			—				—				—				(2.14	)			(0.53	)			(0.23	)
Net asset value at end of period		$	25.42			$	25.02			$	21.18			$	25.06			$	28.54			$	23.31
Total return (a)			1.6	%(b)			18.1	%			(15.5	%)			(4.7	%)			24.7	%			5.4	%
Ratios/Supplementary Data:
Net assets at end of period (000’s)		$	20,726			$	21,012			$	18,772			$	28,129			$	32,030			$	30,573
Ratio of total expenses to average net assets			1.88	%(d)			1.80	%			1.59	%			1.46	%			1.45	%			1.41	%
Ratio of net expenses to average net assets			1.25	%(c)(d)			1.25	%(c)			1.35	%(c)			1.46	%			1.45	%			1.41	%
Ratio of net investment income (loss) to average net assets			(0.55	%)(c)(d)			(0.35	%)(c)			(0.40	%)(c)			(0.28	%)			(0.13	%)			0.90	%
Portfolio turnover rate			33	%(b)			48	%			104	%			72	%			57	%			62	%

 

11

 

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SCHWARTZ VALUE FOCUSED FUND
NOTES TO FINANCIAL STATEMENTS
June 30, 2017 (Unaudited)

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1. Significant Accounting Policies

 

Schwartz Value Focused Fund (the “Fund”) is a 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. Other series of the Trust are not incorporated in this report. The Fund is registered under the Investment Company Act of 1940 and commenced operations on July 20, 1993. At a meeting held on June 29, 2016, the shareholders of the Fund voted to change the classification of the Fund from a diversified fund to a non-diversified fund.

 

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 (“NAV”). To calculate the NAV, 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 NAV per share.

 

In October 2016, the U.S. Securities and Exchange Commission (the “SEC”) adopted amendments to Regulation S-X which will impact financial statement presentation, particularly the presentation of derivative investments. Although still evaluating the impact, management believes that many of the Regulation S-X amendments are consistent with the Fund’s current financial statement presentation and expects that the Fund will be able to comply with the amendments by the August 1, 2017 compliance date.

 

The following is a summary of significant accounting policies followed by the Fund. The policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”). As an investment company, as defined in Financial Accounting Standards Board (“FASB”) Accounting Standards Update 2013-08, the Fund follows accounting and reporting guidance under FASB Accounting Standards Codification Topic 946, “Financial Services – Investment Companies.”

 

 

12

 

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SCHWARTZ VALUE FOCUSED FUND
NOTES TO FINANCIAL STATEMENTS
(Continued)

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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 NAV 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.

 

GAAP establishes a single authoritative definition of fair value, sets out a framework for measuring fair value and requires additional disclosures about fair value measurements.

 

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

 

●

Level 1 – quoted prices in active markets for identical securities

 

●

Level 2 – other significant observable inputs

 

●

Level 3 – significant unobservable inputs

 

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, 2017:

 

		Level 1				Level 2				Level 3				Total
Common Stocks		$	19,652,051			$	—			$	—			$	19,652,051
Open-End Funds			14,266				—				—				14,266
Money Market Funds			1,075,713				—				—				1,075,713
Total		$	20,742,030			$	—			$	—			$	20,742,030

 

Refer to the Fund’s Schedule of Investments for a listing of the securities by industry type. As of June 30, 2017, the Fund did not have any transfers into or out of any Level. There were no Level 2 or 3 securities or derivative instruments held by the Fund as of June 30, 2017. It is the Fund’s policy to recognize transfers into or out of any Level at the end of the reporting period.

 

 

13

 

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SCHWARTZ VALUE FOCUSED FUND
NOTES TO FINANCIAL STATEMENTS
(Continued)

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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.

 

The following information is computed on a tax basis for each item as of June 30, 2017:

 

Federal income tax cost		$	17,439,397
Gross unrealized appreciation		$	3,754,204
Gross unrealized depreciation			(451,571	)
Net unrealized appreciation			3,302,633
Accumulated ordinary loss			(57,839	)
Capital loss carryforwards			(509,257	)
Other gains			1,466,693
Accumulated earnings		$	4,202,230

 

As of December 31, 2016, the Fund had a short-term capital loss carryforward of $509,257 for federal income tax purposes. This capital loss carryforward, which does not expire, may be utilized in the current and future years to offset net realized capital gains, if any, prior to distributing such gains 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, 2013 through December 31, 2016) and has concluded that no provision for unrecognized tax benefits or expenses is required in these financial statements.

 

 

 

 

14

 

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SCHWARTZ VALUE FOCUSED FUND
NOTES TO FINANCIAL STATEMENTS
(Continued)

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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 Executive 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 Adviser has contractually agreed to reduce its advisory fees or reimburse a portion of the Fund’s expenses until at least May 1, 2018 so that the ordinary operating expenses of the Fund do not exceed 1.25% per annum of average daily net assets. Accordingly, during the six months ended June 30, 2017, the Adviser reduced its investment advisory fees by $65,585.

 

Any fee reductions or expense reimbursements by the Adviser are subject to repayment by the Fund for a period of three years after such fees and expenses were incurred, provided repayment to the Adviser does not cause the ordinary operating expenses of the Fund to exceed 1.25% per annum of average daily net assets. As of June 30, 2017, the Advisor may seek recoupment of investment advisory fee reductions totaling $229,069 no later than the dates stated below:

 

December 31, 2018	December 31, 2019	June 30, 2020	Total
$ 56,616	$ 106,868	$ 65,585	$ 229,069

 

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 NAV 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 as a percentage of the average daily net assets of the Fund, subject to a minimum monthly fee.

 

15

 

---

SCHWARTZ VALUE FOCUSED FUND
NOTES TO FINANCIAL STATEMENTS
(Continued)

---

 

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 (“Independent Trustee”) receives from the Trust an annual retainer of $40,000 (except that such fee is $50,000 for the Lead Independent Trustee and $44,000 for the Chairman of the Audit Committee), payable quarterly; a fee of $6,000 for attendance at each meeting of the Board of Trustees; plus reimbursement of travel and other expenses incurred in attending meetings. The Fund pays its proportionate share of Independent Trustees’ fees and expenses along with the other series of the Trust.

 

3. Investment Transactions

 

During the six months ended June 30, 2017, cost of purchases and proceeds from sales and maturities of investment securities, excluding short-term investments and U.S. government securities, amounted to $6,493,713 and $6,423,989, respectively.

 

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. 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.

 

16

 

---

SCHWARTZ VALUE FOCUSED FUND
ABOUT YOUR FUND’S EXPENSES
(Unaudited)

---

 

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, 2017) and held until the end of the period (June 30, 2017).

 

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 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, 2017	Ending Account Value June 30, 2017	Expenses Paid During Period*
Based on Actual Fund Return	$1,000.00	$1,016.00	$6.25
Based on Hypothetical 5% Return (before expenses)	$1,000.00	$1,018.60	$6.26

 

17

 

---

SCHWARTZ VALUE FOCUSED FUND
APPROVAL OF ADVISORY AGREEMENT
(Unaudited)

---

 

At an in-person meeting held on February 11, 2017 (the “Board Meeting”), the Board of Trustees, including the Independent Trustees voting separately, approved the continuation of the Fund’s Advisory Agreement with the Adviser.

 

The Independent Trustees were advised and assisted throughout their evaluation by independent legal counsel experienced in matters relating to the investment management industry. The Independent Trustees received advice from their independent legal counsel, including a legal memorandum, on the standards and obligations in connection with their consideration of the continuation of the Advisory Agreement. The Independent 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 Independent Trustees also retained an independent consultant (Strategic Insight) to prepare an expense and performance analysis for the Fund and met separately with the consultant prior to the Board Meeting to discuss the methodologies that Strategic Insight used to construct its report. During this meeting, the independent consultant discussed the Morningstar, Inc. (“Morningstar”) category that Strategic Insight identified to base its peer group comparisons for the Fund and other aspects of its report. To further prepare for the Board Meeting, the Independent Trustees met separately with independent counsel to discuss the continuance of the Advisory Agreement, during which time no representatives of the Adviser were present.

 

The Independent Trustees considered that they meet with the portfolio managers of the Fund at regularly scheduled meetings over the course of the year to discuss the investment results, portfolio composition, and developments affecting the performance of the Fund and the investment management industry in general. They also considered that the portfolio managers had also discussed the overall condition of the economy and the markets, including an analysis of the factors that have influenced the markets, investor preferences and market sentiment.

 

The Independent Trustees reviewed, among other things: (1) industry data comparing the advisory fee and expense ratio of the Fund with those of comparable investment companies and any model portfolios under the management of the Adviser; (2) comparative performance information; (3) the Adviser’s revenues and profitability from providing services to the Fund; and (4) information about the Adviser’s portfolio managers, research analysts, investment process, compliance program and risk management processes.

 

As part of this process, the Independent 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

 

18

 

---

SCHWARTZ VALUE FOCUSED FUND
APPROVAL OF ADVISORY AGREEMENT
(Unaudited) (Continued)

---

 

●

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

 

In their consideration of the nature, extent and quality of services provided to the Fund, the Independent Trustees evaluated the responsibilities of the Adviser under the Advisory Agreement and the investment management process applied to the Fund. The Independent Trustees reviewed the background and experience of the Adviser’s key investment, research and operational personnel. The Independent Trustees next considered the Adviser’s responsibilities in monitoring the administrative and shareholder services provided to the Fund and the Adviser’s various ongoing responsibilities with regard to the compliance program of the Trust. The Independent Trustees considered the strength and stability of the Adviser, its overall compliance record and discussed the efforts of the Adviser to address the risks of cybersecurity threats during the past year.

 

The Independent Trustees reviewed information provided by the independent consultant on the advisory fees paid by the Fund and compared such fees to the advisory fees paid by similar mutual funds, as compiled by Morningstar. The Independent Trustees compared the Fund’s net advisory fee with the net advisory fees of representative funds within its Morningstar peer group, with the Morningstar information showing that the net advisory fee of the Fund is lower than the median net advisory fees of its Morningstar peers. The Independent Trustees took into account that the fee reductions made by the Adviser on behalf of the Fund had the effect of reducing the net management fee and net operating expenses of the Fund during the 2016 calendar year. The Independent Trustees also compared the Fund’s net expense ratio with the net expense ratio of representative funds within its Morningstar peer group, with the Morningstar information showing that the net expense ratio of the Fund is lower than the median net expense ratio of its Morningstar peers. The Independent Trustees concluded that, based upon the investment strategies of the Fund, the advisory fees paid by the Fund are acceptable.

 

The Independent Trustees reviewed the Adviser’s analysis of its profitability in managing the Fund during the 2016 calendar year, including the methodology by which that profitability analysis was calculated. The Independent 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 Independent Trustees considered the costs to the Adviser of providing 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. They also considered that the Adviser bears the shareholder recordkeeping costs to third party intermediaries on behalf of the Fund, in a broader context of the Adviser’s overall business. Based upon their review of the Adviser’s profitability analysis, the Board concluded that the Adviser’s profits are reasonable.

 

The Independent Trustees considered both the short-term and long-term investment performance of the Fund in light of its primary investment objective of seeking long-term capital appreciation. The Independent Trustees considered that the Fund’s performance for the one-year period ended December 31, 2016 exceeded the return of its primary benchmark and similarly managed mutual funds as compiled by Morningstar. The

 

19

 

---

SCHWARTZ VALUE FOCUSED FUND
APPROVAL OF ADVISORY AGREEMENT
(Unaudited) (Continued)

---

 

Independent Trustees observed that the Fund’s longer-term performance for selected periods ended December 31, 2016 fell below the returns of its primary benchmark and similarly managed mutual funds as compiled by Morningstar. The Independent Trustees took into account the recent changes to the investment strategy of the Fund, the Adviser’s fundamental approach of identifying good businesses that have the potential to increase in value, and the tendency of a value style of investing to be in and out of favor during certain periods. In view of all the factors considered, the Independent Trustees concluded that the Adviser’s commitment to the Fund and its fundamental value investment process supports their view that the Adviser’s continued management should benefit the Fund and its shareholders.

 

The Independent Trustees also considered the existence of any economies of scale and whether those would be passed along to the Fund’s shareholders. The Independent Trustees concluded that it is not necessary or appropriate at this time to consider adding fee breakpoints to the advisory fee schedule for the Fund.

 

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

 

20

 

---

SCHWARTZ VALUE FOCUSED FUND
OTHER INFORMATION
(Unaudited)

---

 

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.

 

21

 

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

Corporate Offices 801 W. Ann Arbor Trail Suite 244 Plymouth, MI 48170 (734) 455-7777 Fax (734) 455-7720

Ave Maria Value Fund:
Portfolio Manager Commentary	2
Ten Largest Equity Holdings	6
Asset Allocation	6
Schedule of Investments	7
Ave Maria Growth Fund:
Portfolio Manager Commentary	11
Ten Largest Equity Holdings	13
Asset Allocation	13
Schedule of Investments	14
Ave Maria Rising Dividend Fund:
Portfolio Manager Commentary	17
Ten Largest Equity Holdings	19
Asset Allocation	19
Schedule of Investments	20
Ave Maria World Equity Fund:
Portfolio Manager Commentary	23
Ten Largest Equity Holdings	25
Asset Allocation	25
Schedule of Investments	26
Summary of Common Stocks by Country	29
Ave Maria Bond Fund:
Portfolio Manager Commentary	30
Ten Largest Holdings	32
Asset Allocation	32
Schedule of Investments	33
Statements of Assets and Liabilities	38
Statements of Operations	40

Statements of Changes in Net Assets:
Ave Maria Value Fund	42
Ave Maria Growth Fund	43
Ave Maria Rising Dividend Fund	44
Ave Maria World Equity Fund	45
Ave Maria Bond Fund	46
Financial Highlights:
Ave Maria Value Fund	47
Ave Maria Growth Fund	48
Ave Maria Rising Dividend Fund	49
Ave Maria World Equity Fund	50
Ave Maria Bond Fund	51
Notes to Financial Statements	52
About Your Funds’ Expenses	62
Other Information	64
Approval of Advisory Agreements	65

Company	Industry	YTD Return
Noble Energy, Inc.	Oil/Gas Exploration and Production	-29.12%
Avnet, Inc.	Technology Distribution	-19.39%
Halliburton Company	Oil/Gas Equipment and Services	-19.38%
Range Resources Corporation	Natural Gas Exploration and Production	-18.01%
Discover Financial Services	Financial Services	-12.95%

Company	Industry	YTD Return
InterXion Holding N.V.	Internet Software & Services	+30.54%
Liberty Interactive Corporation	Consumer Retail	+30.23%
Moody’s Corporation	Business Services	+29.97%
Zimmer Biomet Holdings, Inc.	Medical Appliances & Equipment	+24.89%
Laboratory Corporation of America	Medical Laboratories & Research	+20.07%

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

Joseph W. Skornicka, CFA

Co-Portfolio Manager

Shares			Company		Market Value				% of Net Assets
	65,000		Laboratory Corporation of America Holdings		$	10,019,100				4.3	%
	350,000		Liberty Interactive Corporation QVC Group - Series A			8,589,000				3.7	%
	125,000		HEICO Corporation - Class A			7,756,250				3.3	%
	60,000		Zimmer Biomet Holdings, Inc.			7,704,000				3.3	%
	20,000		AMERCO			7,321,200				3.2	%
	60,000		Moody's Corporation			7,300,800				3.1	%
	260,000		ARRIS International plc			7,285,200				3.1	%
	150,000		InterXion Holding N.V.			6,867,000				3.0	%
	110,000		AMETEK, Inc.			6,662,700				2.9	%
	40,000		Pioneer Natural Resources Company			6,383,200				2.8	%

Sector		% of Net Assets
Consumer Discretionary			14.4	%
Consumer Staples			4.7	%
Energy			7.1	%
Financials			17.3	%
Health Care			11.0	%
Industrials			14.9	%
Information Technology			18.1	%
Materials			2.4	%
Warrants			0.5	%
Money Market Funds, Liabilities in Excess of Other Assets			9.6	%
			100.0	%

COMMON STOCKS — 89.9%		Shares				Market Value
Consumer Discretionary — 14.4%
Diversified Consumer Services — 3.2%
Graham Holdings Company - Class B			5,000			$	2,998,250
ServiceMaster Global Holdings, Inc. *			110,000				4,310,900
							7,309,150
Household Durables — 2.2%
Garmin Ltd.			100,000				5,103,000
Internet & Direct Marketing Retail — 3.7%
Liberty Interactive Corporation QVC Group - Series A *			350,000				8,589,000
Specialty Retail — 2.2%
AutoNation, Inc. *			25,000				1,054,000
Tractor Supply Company			75,000				4,065,750
							5,119,750
Textiles, Apparel & Luxury Goods — 3.1%
Gildan Activewear, Inc.			50,000				1,536,500
VF Corporation			100,000				5,760,000
							7,296,500
Consumer Staples — 4.7%
Beverages — 4.7%
Brown-Forman Corporation - Class B			100,000				4,860,000
Coca-Cola European Partners plc			150,000				6,100,500
							10,960,500
Energy — 7.1%
Oil, Gas & Consumable Fuels — 7.1%
Noble Energy, Inc.			190,000				5,377,000
Pioneer Natural Resources Company			40,000				6,383,200
Range Resources Corporation			200,000				4,634,000
							16,394,200
Financials — 17.3%
Banks — 1.4%
Fifth Third Bancorp			125,000				3,245,000
Capital Markets — 6.4%
Federated Investors, Inc. - Class B			100,000				2,825,000
Interactive Brokers Group, Inc. - Class A			125,000				4,677,500
Moody's Corporation			60,000				7,300,800
							14,803,300
Consumer Finance — 2.7%
Discover Financial Services			100,000				6,219,000

COMMON STOCKS — 89.9% (Continued)		Shares				Market Value
Financials — 17.3% (Continued)
Diversified Financial Services — 3.0%
Texas Pacific Land Trust			20,000			$	5,875,600
Western Union Company (The)			50,000				952,500
							6,828,100
Insurance — 3.8%
Alleghany Corporation *			10,536				6,266,813
Unico American Corporation * #			282,945				2,645,536
							8,912,349
Health Care — 11.0%
Health Care Equipment & Supplies — 5.1%
Varian Medical Systems, Inc. *			40,000				4,127,600
Zimmer Biomet Holdings, Inc.			60,000				7,704,000
							11,831,600
Health Care Providers & Services — 4.3%
Laboratory Corporation of America Holdings *			65,000				10,019,100
Life Sciences Tools & Services — 1.6%
Waters Corporation *			20,000				3,676,800
Industrials — 14.9%
Aerospace & Defense — 3.8%
HEICO Corporation - Class A			125,000				7,756,250
Hexcel Corporation			20,000				1,055,800
							8,812,050
Electrical Equipment — 3.7%
AMETEK, Inc.			110,000				6,662,700
Eaton Corporation plc			25,000				1,945,750
							8,608,450
Machinery — 4.2%
Colfax Corporation *			75,000				2,952,750
Donaldson Company, Inc.			40,000				1,821,600
Graco, Inc.			45,000				4,917,600
							9,691,950
Road & Rail — 3.2%
AMERCO			20,000				7,321,200
Information Technology — 18.1%
Communications Equipment — 5.2%
ARRIS International plc *			260,000				7,285,200
Ubiquiti Networks, Inc. *			90,000				4,677,300
							11,962,500

COMMON STOCKS — 89.9% (Continued)		Shares				Market Value
Information Technology — 18.1% (Continued)
Electronic Equipment, Instruments & Components — 4.9%
Arrow Electronics, Inc. *			75,000			$	5,881,500
Avnet, Inc.			140,000				5,443,200
							11,324,700
Internet Software & Services — 0.9%
Equinix, Inc.			4,948				2,123,483
IT Services — 5.4%
Cognizant Technology Solutions Corporation - Class A			75,000				4,980,000
DXC Technology Company			8,590				659,025
InterXion Holding N.V. *			150,000				6,867,000
							12,506,025
Software — 1.0%
ANSYS, Inc. *			20,000				2,433,600
Technology Hardware, Storage & Peripherals — 0.7%
Hewlett Packard Enterprise Company			100,000				1,659,000
Materials — 2.4%
Chemicals — 2.4%
Axalta Coating Systems Ltd. *			175,000				5,607,000
Total Common Stocks (Cost $167,069,961)						$	208,357,307

WARRANTS — 0.5%		Shares				Market Value
Financials — 0.5%
Banks — 0.5%
PNC Financial Services Group, Inc. (The), expires 12/31/18 * (Cost $381,599)			20,000			$	1,152,600

MONEY MARKET FUNDS — 9.9%		Shares				Market Value
Federated Government Obligations Tax-Managed Fund - Institutional Shares, 0.76% (a)			11,052,239			$	11,052,239
Federated Treasury Obligations Fund - Institutional Shares, 0.83% (a)			11,052,239				11,052,239
Federated U.S. Treasury Cash Reserves Fund - Institutional Shares, 0.76% (a)			858,412				858,412
Total Money Market Funds (Cost $22,962,890)						$	22,962,890
Total Investments at Market Value — 100.3% (Cost $190,414,450)						$	232,472,797
Liabilities in Excess of Other Assets — (0.3%)							(687,499	)
Net Assets — 100.0%						$	231,785,298

Brian D. Milligan, CFA	Richard L. Platte, Jr., CFA
Lead Portfolio Manager	Co-Portfolio Manager

Shares			Company		Market Value				% of Net Assets
	130,000		Moody's Corporation		$	15,818,400				3.8	%
	450,000		Copart, Inc.			14,305,500				3.5	%
	110,000		Zimmer Biomet Holdings, Inc.			14,124,000				3.4	%
	115,000		MasterCard, Inc. - Class A			13,966,750				3.4	%
	90,000		Laboratory Corporation of America Holdings			13,872,600				3.4	%
	222,600		AMETEK, Inc.			13,482,882				3.3	%
	195,000		Cerner Corporation			12,961,650				3.2	%
	75,000		Amgen, Inc.			12,917,250				3.1	%
	145,000		Medtronic plc			12,868,750				3.1	%
	165,000		Lowe's Companies, Inc.			12,792,450				3.1	%

Sector		% of Net Assets
Consumer Discretionary			18.1	%
Consumer Staples			1.2	%
Energy			0.6	%
Financials			7.2	%
Health Care			18.7	%
Industrials			29.9	%
Information Technology			12.8	%
Materials			3.9	%
Money Market Funds, Liabilities in Excess of Other Assets			7.6	%
			100.0	%

COMMON STOCKS — 92.4%		Shares				Market Value
Consumer Discretionary — 18.1%
Internet & Direct Marketing Retail — 1.6%
Priceline Group, Inc. (The) *			3,500			$	6,546,820
Leisure Products — 0.6%
Polaris Industries, Inc.			25,000				2,305,750
Media — 3.9%
Omnicom Group, Inc.			105,000				8,704,500
Scripps Networks Interactive, Inc. - Class A			110,000				7,514,100
							16,218,600
Specialty Retail — 9.4%
AutoNation, Inc. *			150,000				6,324,000
Lowe's Companies, Inc.			165,000				12,792,450
Ross Stores, Inc.			113,000				6,523,490
TJX Companies, Inc. (The)			95,000				6,856,150
Tractor Supply Company			110,000				5,963,100
							38,459,190
Textiles, Apparel & Luxury Goods — 2.6%
VF Corporation			185,000				10,656,000
Consumer Staples — 1.2%
Beverages — 1.2%
Brown-Forman Corporation - Class B			100,000				4,860,000
Energy — 0.6%
Energy Equipment & Services — 0.6%
Schlumberger Limited			40,000				2,633,600
Financials — 7.2%
Capital Markets — 3.8%
Moody's Corporation			130,000				15,818,400
Diversified Financial Services — 3.4%
MasterCard, Inc. - Class A			115,000				13,966,750
Health Care — 18.7%
Biotechnology — 3.1%
Amgen, Inc.			75,000				12,917,250
Health Care Equipment & Supplies — 9.0%
Medtronic plc			145,000				12,868,750

COMMON STOCKS — 92.4% (Continued)		Shares				Market Value
Health Care — 18.7% (Continued)
Health Care Equipment & Supplies — 9.0% (Continued)
Varian Medical Systems, Inc. *			95,000			$	9,803,050
Zimmer Biomet Holdings, Inc.			110,000				14,124,000
							36,795,800
Health Care Providers & Services — 3.4%
Laboratory Corporation of America Holdings *			90,000				13,872,600
Health Care Technology — 3.2%
Cerner Corporation *			195,000				12,961,650
Industrials — 29.9%
Aerospace & Defense — 1.5%
Hexcel Corporation			120,000				6,334,800
Air Freight & Logistics — 4.9%
Expeditors International of Washington, Inc.			170,000				9,601,600
United Parcel Service, Inc. - Class B			95,000				10,506,050
							20,107,650
Commercial Services & Supplies — 4.0%
Copart, Inc. *			450,000				14,305,500
Rollins, Inc.			50,000				2,035,500
							16,341,000
Electrical Equipment — 6.3%
AMETEK, Inc.			222,600				13,482,882
Rockwell Automation, Inc.			75,000				12,147,000
							25,629,882
Industrial Conglomerates — 1.7%
Roper Technologies, Inc.			30,000				6,945,900
Machinery — 9.3%
Colfax Corporation *			270,000				10,629,900
Donaldson Company, Inc.			210,000				9,563,400
Fortive Corporation			95,000				6,018,250
Graco, Inc.			110,000				12,020,800
							38,232,350
Trading Companies & Distributors — 2.2%
MSC Industrial Direct Company, Inc. - Class A			105,000				9,025,800
Information Technology — 12.8%
Internet Software & Services — 1.1%
Equinix, Inc.			10,000				4,291,600

COMMON STOCKS — 92.4% (Continued)		Shares				Market Value
Information Technology — 12.8% (Continued)
IT Services — 9.6%
Accenture plc - Class A			100,000			$	12,368,000
Broadridge Financial Solutions, Inc.			40,000				3,022,400
Cognizant Technology Solutions Corporation - Class A			180,000				11,952,000
Visa, Inc. - Class A			130,000				12,191,400
							39,533,800
Software — 2.1%
ANSYS, Inc. *			70,000				8,517,600
Materials — 3.9%
Chemicals — 3.9%
Ecolab, Inc.			45,000				5,973,750
Praxair, Inc.			75,000				9,941,250
							15,915,000
Total Common Stocks (Cost $275,233,646)						$	378,887,792

MONEY MARKET FUNDS — 7.7%		Shares				Market Value
Federated Government Obligations Tax-Managed Fund - Institutional Shares, 0.76% (a)			19,530,184			$	19,530,184
Federated Treasury Obligations Fund - Institutional Shares, 0.83% (a)			12,098,890				12,098,890
Total Money Market Funds (Cost $31,629,074)						$	31,629,074
Total Investments at Market Value — 100.1% (Cost $306,862,720)						$	410,516,866
Liabilities in Excess of Other Assets — (0.1%)							(582,835	)
Net Assets — 100.0%						$	409,934,031

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

Shares			Company		Market Value				% of Net Assets
	245,000		Zimmer Biomet Holdings, Inc.		$	31,458,000				3.5	%
	350,000		Medtronic plc			31,062,500				3.4	%
	250,000		Moody's Corporation			30,420,000				3.4	%
	275,000		United Parcel Service, Inc. - Class B			30,412,250				3.4	%
	525,000		VF Corporation			30,240,000				3.4	%
	170,000		Amgen, Inc.			29,279,100				3.2	%
	140,000		3M Company			29,146,600				3.2	%
	649,999		Johnson Controls International plc			28,183,956				3.1	%
	230,000		Diageo plc - ADR			27,560,900				3.0	%
	350,000		Lowe's Companies, Inc.			27,135,500				3.0	%

Sector		% of Net Assets
Consumer Discretionary			18.2	%
Consumer Staples			8.5	%
Energy			4.8	%
Financials			19.8	%
Health Care			10.1	%
Industrials			21.0	%
Information Technology			7.4	%
Materials			5.3	%
Money Market Funds, Liabilities in Excess of Other Assets			4.9	%
			100.0	%

COMMON STOCKS — 95.1% (Continued)		Shares				Market Value
Information Technology — 7.4% (Continued)
IT Services — 3.3%
Broadridge Financial Solutions, Inc.			100,000			$	7,556,000
Cognizant Technology Solutions Corporation - Class A			345,000				22,908,000
							30,464,000
Semiconductors & Semiconductor Equipment — 1.3%
Microchip Technology, Inc.			150,000				11,577,000
Materials — 5.3%
Chemicals — 5.3%
Praxair, Inc.			200,000				26,510,000
RPM International, Inc.			390,000				21,274,500
							47,784,500
Total Common Stocks (Cost $726,993,914)						$	861,087,806

MONEY MARKET FUNDS — 5.1%		Shares				Market Value
Federated Government Obligations Tax-Managed Fund - Institutional Shares, 0.76% (a)			43,364,160			$	43,364,160
Federated Treasury Obligations Fund - Institutional Shares, 0.83% (a)			2,975,693				2,975,693
Total Money Market Funds (Cost $46,339,853)						$	46,339,853
Total Investments at Market Value — 100.2% (Cost $773,333,767)						$	907,427,659
Liabilities in Excess of Other Assets — (0.2%)							(2,186,430	)
Net Assets — 100.0%						$	905,241,229

	Ave Maria World Equity Fund	S&P Global 1200 Index
Americas	56%	62%
Europe Developed	19%	18%
United Kingdom	13%	6%
Japan	3%	8%
Asia Developed	0%	1%
Asia Emerging	3%	2%
Australasia	0%	3%
Cash Equivalents	6%	—

Joseph W. Skornicka, CFA	Robert C. Schwartz, CFP
Lead Portfolio Manager	Co-Portfolio Manager

Shares			Company		Market Value				% of Net Assets
	18,000		Zimmer Biomet Holdings, Inc.		$	2,311,200				4.3	%
	82,000		AXA S.A. - ADR			2,259,920				4.2	%
	13,500		Shire plc - ADR			2,231,145				4.1	%
	48,500		Coca-Cola European Partners plc			1,972,495				3.7	%
	21,619		Medtronic plc			1,918,686				3.6	%
	24,000		TE Connectivity Ltd.			1,888,320				3.5	%
	28,000		Citigroup, Inc.			1,872,640				3.5	%
	23,500		Lowe's Companies, Inc.			1,821,955				3.4	%
	14,000		Diageo plc - ADR			1,677,620				3.1	%
	46,065		Koninklijke Philips N.V.			1,650,037				3.1	%

Sector		% of Net Assets
Consumer Discretionary			8.3	%
Consumer Staples			13.8	%
Energy			7.5	%
Financials			19.8	%
Health Care			12.0	%
Industrials			16.2	%
Information Technology			12.3	%
Materials			1.9	%
Telecommunication Services			1.9	%
Money Market Funds, Liabilities in Excess of Other Assets			6.3	%
			100.0	%

COMMON STOCKS — 93.7%		Shares				Market Value
Consumer Discretionary — 8.3%
Auto Components — 2.5%
Bridgestone Corporation - ADR			61,000			$	1,318,210
Media — 2.4%
WPP plc - ADR			12,500				1,317,625
Specialty Retail — 3.4%
Lowe's Companies, Inc.			23,500				1,821,955
Consumer Staples — 13.8%
Beverages — 9.0%
Coca-Cola European Partners plc			48,500				1,972,495
Diageo plc - ADR			14,000				1,677,620
Heineken N.V. - ADR			25,000				1,218,125
							4,868,240
Food Products — 4.8%
Mondelēz International, Inc. - Class A			30,000				1,295,700
Nestlé S.A. - ADR			14,500				1,264,400
							2,560,100
Energy — 7.5%
Energy Equipment & Services — 2.9%
Halliburton Company			17,000				726,070
Schlumberger Limited			12,800				842,752
							1,568,822
Oil, Gas & Consumable Fuels — 4.6%
Exxon Mobil Corporation			12,500				1,009,125
Pioneer Natural Resources Company			5,400				861,732
Royal Dutch Shell plc - Class B - ADR			11,000				598,730
							2,469,587
Financials — 19.8%
Banks — 3.5%
Citigroup, Inc.			28,000				1,872,640
Capital Markets — 4.4%
Bank of New York Mellon Corporation (The)			31,000				1,581,620
Brookfield Asset Management, Inc. - Class A			21,000				823,410
							2,405,030
Consumer Finance — 2.9%
Discover Financial Services			25,500				1,585,845
Diversified Financial Services — 2.5%
MasterCard, Inc. - Class A			11,000				1,335,950

COMMON STOCKS — 93.7% (Continued)		Shares				Market Value
Financials — 19.8% (Continued)
Insurance — 6.5%
AXA S.A. - ADR			82,000			$	2,259,920
Chubb Limited			8,500				1,235,730
							3,495,650
Health Care — 12.0%
Health Care Equipment & Supplies — 7.9%
Medtronic plc			21,619				1,918,686
Zimmer Biomet Holdings, Inc.			18,000				2,311,200
							4,229,886
Pharmaceuticals — 4.1%
Shire plc - ADR			13,500				2,231,145
Industrials — 16.2%
Aerospace & Defense — 1.6%
Hexcel Corporation			16,500				871,035
Building Products — 1.6%
Johnson Controls International plc			20,500				888,880
Electrical Equipment — 4.8%
AMETEK, Inc.			18,500				1,120,545
Eaton Corporation plc			18,700				1,455,421
							2,575,966
Industrial Conglomerates — 5.5%
Koninklijke Philips N.V.			46,065				1,650,037
Siemens AG - ADR			19,000				1,313,850
							2,963,887
Road & Rail — 2.7%
Canadian National Railway Company			18,000				1,458,900
Information Technology — 12.3%
Electronic Equipment, Instruments & Components — 3.5%
TE Connectivity Ltd.			24,000				1,888,320
Internet Software & Services — 1.6%
Equinix, Inc.			2,000				858,320
IT Services — 4.5%
Accenture plc - Class A			12,500				1,546,000
InterXion Holding N.V. *			19,000				869,820
							2,415,820

COMMON STOCKS — 93.7% (Continued)		Shares				Market Value
Information Technology — 12.3% (Continued)
Semiconductors & Semiconductor Equipment — 2.7%
Taiwan Semiconductor Manufacturing Company Ltd. - ADR			42,500			$	1,485,800
Materials — 1.9%
Chemicals — 1.9%
Axalta Coating Systems Ltd. *			32,000				1,025,280
Telecommunication Services — 1.9%
Diversified Telecommunication Services — 1.9%
Level 3 Communications, Inc. *			17,000				1,008,100
Total Common Stocks (Cost $42,382,955)						$	50,520,993

MONEY MARKET FUNDS — 6.3%		Shares				Market Value
Federated Government Obligations Tax-Managed Fund - Institutional Shares, 0.76% (a)			2,537,494			$	2,537,494
Federated Treasury Obligations Fund - Institutional Shares, 0.83% (a)			846,113				846,113
Total Money Market Funds (Cost $3,383,607)						$	3,383,607
Total Investments at Market Value — 100.0%(Cost $45,766,562)						$	53,904,600
Liabilities in Excess of Other Assets — (0.0%) (b)							(10,312	)
Net Assets — 100.0%						$	53,894,288

Country		Value				% of Net Assets
United States *		$	27,825,176				51.6	%
United Kingdom			7,797,615				14.5	%
Netherlands			3,737,982				7.0	%
Switzerland			2,500,130				4.6	%
Canada			2,282,310				4.2	%
France			2,259,920				4.2	%
Taiwan			1,485,800				2.7	%
Japan			1,318,210				2.5	%
Germany			1,313,850				2.4	%
		$	50,520,993				93.7	%

See accompanying notes to financial statements.

Brandon S. Scheitler	Richard L. Platte, Jr., CFA
Lead Portfolio Manager	Co-Portfolio Manager

Par Value/Shares			Holding		Market Value				% of Net Assets
$	5,000,000		U.S. Treasury Notes, 3.875%, due 05/15/18		$	5,111,330				1.8	%
$	5,000,000		U.S. Treasury Notes, 3.500%, due 02/15/18			5,070,325				1.8	%
$	5,000,000		U.S. Treasury Notes, 2.000%, due 07/31/20			5,061,915				1.8	%
$	5,000,000		U.S. Treasury Notes, 1.750%, due 04/30/22			4,971,290				1.8	%
$	4,000,000		U.S. Treasury Notes, 2.250%, due 03/31/21			4,078,908				1.4	%
$	4,000,000		U.S. Treasury Notes, 1.750%, due 09/30/22			3,963,908				1.4	%
	65,000		VF Corporation			3,744,000				1.3	%
	70,000		Williams-Sonoma, Inc.			3,395,000				1.2	%
	30,000		United Parcel Service, Inc. - Class B			3,317,700				1.2	%
	25,000		Praxair, Inc.			3,313,750				1.2	%

		% of Net Assets
U.S. TREASURY OBLIGATIONS
U.S. Treasuries			46.2	%
CORPORATE BONDS
Sector
Consumer Discretionary			5.7	%
Consumer Staples			11.6	%
Energy			3.0	%
Financials			2.3	%
Health Care			2.0	%
Industrials			6.7	%
Information Technology			2.0	%
Materials			0.9	%
Utilities			0.9	%
COMMON STOCKS
Sector
Consumer Discretionary			3.4	%
Consumer Staples			1.1	%
Energy			2.3	%
Financials			2.1	%
Health Care			1.2	%
Industrials			3.4	%
Information Technology			1.8	%
Materials			1.2	%
Money Market Funds, Other Assets in Excess of Liabilities			2.2	%
			100.0	%

U.S. TREASURY OBLIGATIONS — 46.2%		Par Value				Market Value
U.S. Treasury Bonds — 2.0%
8.125%, due 05/15/21		$	2,000,000			$	2,476,876
8.000%, due 11/15/21			2,500,000				3,150,487
							5,627,363
U.S. Treasury Inflation-Protected Notes — 2.0%
2.625%, due 07/15/17			1,179,700				1,180,575
0.125%, due 04/15/18			2,115,420				2,107,735
1.125%, due 01/15/21			2,235,400				2,321,242
							5,609,552
U.S. Treasury Notes — 42.2%
2.375%, due 07/31/17			3,000,000				3,003,447
0.625%, due 09/30/17			2,500,000				2,497,225
0.750%, due 10/31/17			3,000,000				2,996,580
0.875%, due 11/15/17			3,000,000				2,997,300
0.750%, due 12/31/17			2,000,000				1,995,990
0.875%, due 01/15/18			3,000,000				2,995,308
3.500%, due 02/15/18			5,000,000				5,070,325
3.875%, due 05/15/18			5,000,000				5,111,330
1.125%, due 06/15/18			3,000,000				2,995,194
1.375%, due 07/31/18			2,000,000				2,001,718
1.250%, due 10/31/18			3,000,000				2,996,484
1.500%, due 01/31/19			3,000,000				3,006,093
1.500%, due 02/28/19			3,000,000				3,006,210
1.625%, due 04/30/19			3,000,000				3,013,008
1.000%, due 11/15/19			3,000,000				2,968,476
1.500%, due 11/30/19			3,000,000				3,002,814
1.250%, due 01/31/20			3,000,000				2,981,601
1.375%, due 02/29/20			2,000,000				1,992,968
1.625%, due 03/15/20			3,000,000				3,009,492
1.500%, due 04/15/20			3,000,000				2,997,891
3.500%, due 05/15/20			3,000,000				3,164,883
1.625%, due 06/30/20			3,000,000				3,005,274
2.000%, due 07/31/20			5,000,000				5,061,915
2.625%, due 08/15/20			3,000,000				3,094,101
2.000%, due 09/30/20			3,000,000				3,036,564
1.375%, due 10/31/20			3,000,000				2,975,391
2.625%, due 11/15/20			3,000,000				3,096,327
2.375%, due 12/31/20			2,000,000				2,048,438
2.250%, due 03/31/21			4,000,000				4,078,908
1.375%, due 04/30/21			3,000,000				2,961,681
2.125%, due 09/30/21			3,000,000				3,040,899
1.500%, due 01/31/22			3,000,000				2,954,532
1.750%, due 03/31/22			2,000,000				1,989,688
1.750%, due 04/30/22			5,000,000				4,971,290

U.S. TREASURY OBLIGATIONS — 46.2% (Continued)		Par Value				Market Value
U.S. Treasury Notes — 42.2% (Continued)
2.000%, due 07/31/22		$	3,000,000			$	3,013,944
1.750%, due 09/30/22			4,000,000				3,963,908
2.000%, due 02/15/23			3,000,000				3,001,407
2.500%, due 08/15/23			3,000,000				3,078,867
							119,177,471
Total U.S. Treasury Obligations (Cost $130,701,071)						$	130,414,386

CORPORATE BONDS — 35.1%		Par Value				Market Value
Consumer Discretionary — 5.7%
Lowe's Companies, Inc., 3.120%, due 04/15/22		$	3,000,000			$	3,102,225
McDonald's Corporation, 5.350%, due 03/01/18			2,000,000				2,049,542
Ross Stores, Inc., 3.375%, due 09/15/24			3,000,000				3,051,126
TJX Companies, Inc. (The), 2.750%, due 06/15/21			2,305,000				2,350,477
VF Corporation, 5.950%, due 11/01/17			2,270,000				2,302,350
VF Corporation, 3.500%, due 09/01/21			3,000,000				3,128,823
							15,984,543
Consumer Staples — 11.6%
Coca-Cola Company (The), 1.650%, due 11/01/18			1,500,000				1,503,683
Coca-Cola Company (The), 3.300%, due 09/01/21			2,000,000				2,092,516
Colgate-Palmolive Company, 2.450%, due 11/15/21			3,000,000				3,043,029
Colgate-Palmolive Company, 1.950%, due 02/01/23			2,263,000				2,209,736
Colgate-Palmolive Company, 3.250%, due 03/15/24			795,000				824,002
Dr Pepper Snapple Group, Inc., 3.200%, due 11/15/21			2,000,000				2,054,354
Dr Pepper Snapple Group, Inc., 3.130%, due 12/15/23			2,000,000				2,030,786
Hershey Company (The), 2.625%, due 05/01/23			2,831,000				2,877,344
Hormel Foods Corporation, 4.125%, due 04/15/21			2,564,000				2,739,339
J.M. Smucker Company (The), 3.500%, due 10/15/21			2,000,000				2,084,128
Kellogg Company, 4.150%, due 11/15/19			2,042,000				2,141,539
Kimberly-Clark Corporation, 6.125%, due 08/01/17			1,475,000				1,479,763
Kimberly-Clark Corporation, 2.400%, due 03/01/22			2,311,000				2,306,382
McCormick & Company, Inc., 3.900%, due 07/15/21			2,500,000				2,637,545
McCormick & Company, Inc., 3.500%, due 09/01/23			2,500,000				2,601,280
							32,625,426
Energy — 3.0%
ConocoPhillips, 1.050%, due 12/15/17			1,750,000				1,746,770
Exxon Mobil Corporation, 2.397%, due 03/06/22			2,000,000				2,010,452
Exxon Mobil Corporation, 3.176%, due 03/15/24			1,634,000				1,677,657
Occidental Petroleum Corporation, 3.125%, due 02/15/22			2,940,000				3,019,027
							8,453,906

CORPORATE BONDS — 35.1% (Continued)		Par Value				Market Value
Financials — 2.3%
Bank of New York Mellon Corporation (The), 2.100%, due 08/01/18		$	1,000,000			$	1,004,971
MasterCard, Inc., 2.000%, due 04/01/19			2,000,000				2,015,956
MasterCard, Inc., 3.375%, due 04/01/24			2,300,000				2,398,797
U.S. Bancorp, 2.200%, due 04/25/19			1,173,000				1,182,765
							6,602,489
Health Care — 2.0%
Amgen, Inc., 3.875%, due 11/15/21			2,108,000				2,221,938
Stryker Corporation, 4.375%, due 01/15/20			1,000,000				1,056,260
Zimmer Holdings, Inc., 4.625%, due 11/30/19			2,310,000				2,431,679
							5,709,877
Industrials — 6.7%
3M Company, 2.000%, due 06/26/22			1,073,000				1,065,783
Emerson Electric Company, 5.250%, due 10/15/18			1,600,000				1,670,584
Emerson Electric Company, 4.250%, due 11/15/20			2,109,000				2,264,454
Illinois Tool Works, Inc., 1.950%, due 03/01/19			2,000,000				2,014,664
Illinois Tool Works, Inc., 6.250%, due 04/01/19			1,000,000				1,076,453
John Deere Capital Corporation, 1.700%, due 01/15/20			2,000,000				1,992,940
Norfolk Southern Corporation, 5.750%, due 04/01/18			885,000				910,889
Norfolk Southern Corporation, 5.900%, due 06/15/19			441,000				474,538
Snap-on, Inc., 6.125%, due 09/01/21			2,000,000				2,295,900
Union Pacific Corporation, 2.250%, due 02/15/19			2,000,000				2,018,208
United Parcel Service, Inc., 5.500%, due 01/15/18			1,500,000				1,531,812
United Parcel Service, Inc., 5.125%, due 04/01/19			1,500,000				1,585,708
							18,901,933
Information Technology — 2.0%
CA, Inc., 5.375%, due 12/01/19			1,000,000				1,049,852
CA, Inc., 4.500%, due 08/15/23			2,000,000				2,063,390
Cisco Systems, Inc., 4.450%, due 01/15/20			606,000				645,597
Texas Instruments, Inc., 1.650%, due 08/03/19			2,000,000				2,001,382
							5,760,221
Materials — 0.9%
Praxair, Inc., 2.250%, due 09/24/20			2,000,000				2,019,260
Praxair, Inc., 4.050%, due 03/15/21			500,000				532,391
							2,551,651
Utilities — 0.9%
Consolidated Edison Company of New York, Inc., 6.650%, due 04/01/19			800,000				863,553
Georgia Power Company, 4.250%, due 12/01/19			1,500,000				1,571,314
							2,434,867
Total Corporate Bonds (Cost $98,615,159)						$	99,024,913

COMMON STOCKS — 16.5%		Shares				Market Value
Consumer Discretionary — 3.4%
Media — 0.9%
Omnicom Group, Inc.			30,000			$	2,487,000
Specialty Retail — 1.2%
Williams-Sonoma, Inc.			70,000				3,395,000
Textiles, Apparel & Luxury Goods — 1.3%
VF Corporation			65,000				3,744,000
Consumer Staples — 1.1%
Beverages — 1.1%
Diageo plc - ADR			25,000				2,995,750
Energy — 2.3%
Oil, Gas & Consumable Fuels — 2.3%
Exxon Mobil Corporation			40,000				3,229,200
Royal Dutch Shell plc - Class B - ADR			60,000				3,265,800
							6,495,000
Financials — 2.1%
Banks — 1.3%
Fifth Third Bancorp			90,000				2,336,400
PNC Financial Services Group, Inc. (The)			10,000				1,248,700
							3,585,100
Insurance — 0.8%
Chubb Limited			15,000				2,180,700
Health Care — 1.2%
Biotechnology — 1.2%
Amgen, Inc.			19,000				3,272,370
Industrials — 3.4%
Air Freight & Logistics — 1.2%
United Parcel Service, Inc. - Class B			30,000				3,317,700
Electrical Equipment — 0.5%
Emerson Electric Company			25,000				1,490,500
Industrial Conglomerates — 0.8%
3M Company			11,000				2,290,090
Trading Companies & Distributors — 0.9%
Fastenal Company			60,000				2,611,800

COMMON STOCKS — 16.5% (Continued)		Shares				Market Value
Information Technology — 1.8%
Communications Equipment — 0.9%
Cisco Systems, Inc.			80,000			$	2,504,000
Semiconductors & Semiconductor Equipment — 0.9%
Texas Instruments, Inc.			35,000				2,692,550
Materials — 1.2%
Chemicals — 1.2%
Praxair, Inc.			25,000				3,313,750
Total Common Stocks (Cost $40,021,109)						$	46,375,310

MONEY MARKET FUNDS — 1.6%		Shares				Market Value
Federated Government Obligations Tax-Managed Fund - Institutional Shares, 0.76% (a) (Cost $4,621,042)			4,621,042			$	4,621,042
Total Investments at Market Value — 99.4% (Cost $273,958,381)						$	280,435,651
Other Assets in Excess of Liabilities — 0.6%							1,772,021
Net Assets — 100.0%						$	282,207,672

		Ave Maria Value Fund				Ave Maria Growth Fund				Ave Maria Rising Dividend Fund
ASSETS
Investment securities:
At cost		$	189,307,358			$	306,862,720			$	773,333,767
At market value (Note 1)		$	229,827,261			$	410,516,866			$	907,427,659
Affiliated investment, at market value (Cost $1,107,092) (Note 5)			2,645,536				—				—
Cash			51,000				—				—
Receivable for investment securities sold			—				—				2,961,007
Receivable for capital shares sold			43,721				233,133				397,776
Dividends receivable			82,499				159,599				1,164,687
Other assets			22,809				29,226				44,050
TOTAL ASSETS			232,672,826				410,938,824				911,995,179
LIABILITIES
Dividends payable			—				—				251,900
Payable for investment securities purchased			—				—				4,151,933
Payable for capital shares redeemed			300,058				62,923				535,177
Payable to Adviser (Note 2)			543,316				872,925				1,684,343
Payable to administrator (Note 2)			25,591				43,274				85,524
Other accrued expenses			18,563				25,671				45,073
TOTAL LIABILITIES			887,528				1,004,793				6,753,950
NET ASSETS		$	231,785,298			$	409,934,031			$	905,241,229
NET ASSETS CONSIST OF:
Paid-in capital		$	175,662,668			$	285,169,771			$	749,553,245
Accumulated net investment income (loss)			(323,365	)			82,500				(14,702	)
Accumulated net realized gains from security transactions			14,387,648				21,027,614				21,608,794
Net unrealized appreciation on investments			42,058,347				103,654,146				134,093,892
NET ASSETS		$	231,785,298			$	409,934,031			$	905,241,229
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value)			11,526,833				13,824,137				51,412,627
Net asset value, offering price and redemption price per share (Note 1)		$	20.11			$	29.65			$	17.61

See accompanying notes to financial statements.

See accompanying notes to financial statements.

See accompanying notes to financial statements.

See accompanying notes to financial statements.

		Six Months Ended June 30, 2017 (Unaudited)				Year Ended December 31, 2016
FROM OPERATIONS
Net investment loss		$	(323,365	)		$	(315,335	)
Net realized gains from security transactions			14,463,712				759,085
Net change in unrealized appreciation (depreciation) on unaffiliated investments			(2,218,007	)			31,168,016
Net change in unrealized appreciation (depreciation) on affiliated investment (Note 5)			(396,123	)			234,845
Net increase in net assets resulting from operations			11,526,217				31,846,611
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold			9,414,032				18,785,042
Payments for shares redeemed			(13,748,199	)			(37,917,350	)
Net decrease in net assets from capital share transactions			(4,334,167	)			(19,132,308	)
TOTAL INCREASE IN NET ASSETS			7,192,050				12,714,303
NET ASSETS
Beginning of period			224,593,248				211,878,945
End of period		$	231,785,298			$	224,593,248
ACCUMULATED NET INVESTMENT LOSS		$	(323,365	)		$	—
SUMMARY OF CAPITAL SHARE ACTIVITY
Shares sold			478,646				1,082,577
Shares redeemed			(699,257	)			(2,236,079	)
Net decrease in shares outstanding			(220,611	)			(1,153,502	)
Shares outstanding, beginning of period			11,747,444				12,900,946
Shares outstanding, end of period			11,526,833				11,747,444

See accompanying notes to financial statements.

		Six Months Ended June 30, 2017 (Unaudited)				Year Ended December 31, 2016
FROM OPERATIONS
Net investment income		$	82,175			$	282,606
Net realized gains from security transactions			21,085,806				19,911,248
Net change in unrealized appreciation (depreciation) on investments			22,039,110				16,379,060
Net increase in net assets resulting from operations			43,207,091				36,572,914
FROM DISTRIBUTIONS TO SHAREHOLDERS (Note 1)
From net investment income			—				(282,071	)
From net realized gains on investments			—				(19,859,026	)
Decrease in net assets from distributions to shareholders			—				(20,141,097	)
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold			39,799,530				66,665,565
Reinvestment of distributions to shareholders			—				19,003,389
Payments for shares redeemed			(24,158,053	)			(51,134,124	)
Net increase in net assets from capital share transactions			15,641,477				34,534,830
TOTAL INCREASE IN NET ASSETS			58,848,568				50,966,647
NET ASSETS
Beginning of period			351,085,463				300,118,816
End of period		$	409,934,031			$	351,085,463
ACCUMULATED NET INVESTMENT INCOME		$	82,500			$	325
SUMMARY OF CAPITAL SHARE ACTIVITY
Shares sold			1,399,769				2,491,544
Shares issued in reinvestment of distributions to shareholders			—				716,031
Shares redeemed			(854,682	)			(1,922,757	)
Net increase in shares outstanding			545,087				1,284,818
Shares outstanding, beginning of period			13,279,050				11,994,232
Shares outstanding, end of period			13,824,137				13,279,050

See accompanying notes to financial statements.

		Six Months Ended June 30, 2017 (Unaudited)				Year Ended December 31, 2016
FROM OPERATIONS
Net investment income		$	4,484,774			$	12,621,006
Net realized gains from security transactions			21,608,794				41,833,619
Net change in unrealized appreciation (depreciation) on investments			19,748,732				56,390,612
Net increase in net assets resulting from operations			45,842,300				110,845,237
FROM DISTRIBUTIONS TO SHAREHOLDERS (Note 1)
From net investment income			(4,523,163	)			(12,909,764	)
From net realized gains on investments			—				(41,895,923	)
Decrease in net assets from distributions to shareholders			(4,523,163	)			(54,805,687	)
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold			104,301,123				147,667,667
Reinvestment of distributions to shareholders			4,049,428				49,246,521
Payments for shares redeemed			(73,077,687	)			(175,194,379	)
Net increase in net assets from capital share transactions			35,272,864				21,719,809
TOTAL INCREASE IN NET ASSETS			76,592,001				77,759,359
NET ASSETS
Beginning of period			828,649,228				750,889,869
End of period		$	905,241,229			$	828,649,228
ACCUMULATED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME		$	(14,702	)		$	23,687
SUMMARY OF CAPITAL SHARE ACTIVITY
Shares sold			6,001,804				8,883,400
Shares issued in reinvestment of distributions to shareholders			230,428				2,932,685
Shares redeemed			(4,185,596	)			(10,655,828	)
Net increase in shares outstanding			2,046,636				1,160,257
Shares outstanding, beginning of period			49,365,991				48,205,734
Shares outstanding, end of period			51,412,627				49,365,991

See accompanying notes to financial statements.

		Six Months Ended June 30, 2017 (Unaudited)				Year Ended December 31, 2016
FROM OPERATIONS
Net investment income		$	222,924			$	214,022
Net realized gains from security transactions			1,298,272				662,978
Net change in unrealized appreciation (depreciation) on investments			3,229,143				2,783,627
Net increase in net assets resulting from operations			4,750,339				3,660,627
FROM DISTRIBUTIONS TO SHAREHOLDERS (Note 1)
From net investment income			—				(214,087	)
From net realized gains on investments			—				(663,055	)
Decrease in net assets from distributions to shareholders			—				(877,142	)
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold			4,512,014				7,653,870
Reinvestment of distributions to shareholders			—				795,768
Payments for shares redeemed			(1,397,726	)			(6,402,287	)
Net increase in net assets from capital share transactions			3,114,288				2,047,351
TOTAL INCREASE IN NET ASSETS			7,864,627				4,830,836
NET ASSETS
Beginning of period			46,029,661				41,198,825
End of period		$	53,894,288			$	46,029,661
ACCUMULATED NET INVESTMENT INCOME		$	222,924			$	—
SUMMARY OF CAPITAL SHARE ACTIVITY
Shares sold			320,910				602,612
Shares issued in reinvestment of distributions to shareholders			—				60,286
Shares redeemed			(100,351	)			(505,382	)
Net increase in shares outstanding			220,559				157,516
Shares outstanding, beginning of period			3,491,597				3,334,081
Shares outstanding, end of period			3,712,156				3,491,597

See accompanying notes to financial statements.

		Six Months Ended June 30, 2017 (Unaudited)				Year Ended December 31, 2016
FROM OPERATIONS
Net investment income		$	1,915,516			$	3,138,800
Net realized gains from security transactions			1,604,937				3,861,048
Net change in unrealized appreciation (depreciation) on investments			1,179,800				3,234,642
Net increase in net assets resulting from operations			4,700,253				10,234,490
FROM DISTRIBUTIONS TO SHAREHOLDERS (Note 1)
From net investment income			(1,925,173	)			(3,155,930	)
From net realized gains on investments			—				(3,868,004	)
Decrease in net assets from distributions to shareholders			(1,925,173	)			(7,023,934	)
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold			47,739,728				65,462,953
Reinvestment of distributions to shareholders			1,671,073				6,225,863
Payments for shares redeemed			(18,949,473	)			(49,770,221	)
Net increase in net assets from capital share transactions			30,461,328				21,918,595
TOTAL INCREASE IN NET ASSETS			33,236,408				25,129,151
NET ASSETS
Beginning of period			248,971,264				223,842,113
End of period		$	282,207,672			$	248,971,264
ACCUMULATED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME		$	(3,294	)		$	6,363
SUMMARY OF CAPITAL SHARE ACTIVITY
Shares sold			4,230,738				5,795,182
Shares issued in reinvestment of distributions to shareholders			148,002				553,927
Shares redeemed			(1,679,002	)			(4,412,326	)
Net increase in shares outstanding			2,699,738				1,936,783
Shares outstanding, beginning of period			22,254,937				20,318,154
Shares outstanding, end of period			24,954,675				22,254,937

See accompanying notes to financial statements.

		Six Months Ended June 30, 2017 (Unaudited)				Year Ended December 31, 2016				Year Ended December 31, 2015				Year Ended December 31, 2014				Year Ended December 31, 2013				Year Ended December 31, 2012
Net asset value at beginning of period		$	19.12			$	16.42			$	19.97			$	21.21			$	17.78			$	16.20
Income (loss) from investment operations:
Net investment income (loss)			(0.03	)			(0.03	)			0.01				(0.01	)			(0.00	)(a)			0.06
Net realized and unrealized gains (losses) on investments			1.02				2.73				(3.54	)			0.63				4.66				2.09
Total from investment operations			0.99				2.70				(3.53	)			0.62				4.66				2.15
Less distributions:
From net investment income			—				—				(0.01	)			—				—				(0.06	)
From net realized gains on investments			—				—				(0.01	)			(1.86	)			(1.23	)			(0.51	)
Total distributions			—				—				(0.02	)			(1.86	)			(1.23	)			(0.57	)
Net asset value at end of period		$	20.11			$	19.12			$	16.42			$	19.97			$	21.21			$	17.78
Total return (b)			5.2	%(c)			16.4	%			(17.7	%)			2.9	%			26.2	%			13.3	%
Ratios/Supplementary Data:
Net assets at end of period (000’s)		$	231,785			$	224,593			$	211,879			$	246,790			$	246,801			$	191,100
Ratio of total expenses to average net assets			1.20	%(d)			1.20	%			1.18	%			1.29	%			1.42	%			1.48	%
Ratio of net investment income (loss) to average net assets			(0.28	%)(d)			(0.15	%)			0.06	%			(0.04	%)			(0.02	%)			0.35	%
Portfolio turnover rate			28	%(c)			47	%			63	%			31	%			29	%			25	%

		Six Months Ended June 30, 2017 (Unaudited)				Year Ended December 31, 2016				Year Ended December 31, 2015				Year Ended December 31, 2014				Year Ended December 31, 2013				Year Ended December 31, 2012
Net asset value at beginning of period		$	26.44			$	25.02			$	28.24			$	30.19			$	23.71			$	20.67
Income (loss) from investment operations:
Net investment income (loss)			0.01				0.02				0.07				(0.03	)			(0.08	)			(0.04	)
Net realized and unrealized gains (losses) on investments			3.20				3.01				(0.81	)			2.33				7.55				3.08
Total from investment operations			3.21				3.03				(0.74	)			2.30				7.47				3.04
Less distributions:
From net investment income			—				(0.02	)			(0.07	)			—				—				—
From net realized gains on investments			—				(1.59	)			(2.41	)			(4.25	)			(0.99	)			—
Total distributions			—				(1.61	)			(2.48	)			(4.25	)			(0.99	)			—
Net asset value at end of period		$	29.65			$	26.44			$	25.02			$	28.24			$	30.19			$	23.71
Total return (a)			12.1	%(b)			12.1	%			(2.7	%)			7.5	%			31.5	%			14.7	%
Ratios/Supplementary Data:
Net assets at end of period (000’s)		$	409,934			$	351,085			$	300,119			$	303,840			$	285,132			$	198,761
Ratio of total expenses to average net assets			1.13	%(c)			1.17	%			1.17	%			1.28	%			1.43	%			1.50	%
Ratio of net investment income (loss) to average net assets			0.04	%(c)			0.09	%			0.24	%			(0.10	%)			(0.29	%)			(0.17	%)
Portfolio turnover rate			15	%(b)			29	%			32	%			36	%			18	%			33	%

		Six Months Ended June 30, 2017 (Unaudited)				Year Ended December 31, 2016				Year Ended December 31, 2015				Year Ended December 31, 2014				Year Ended December 31, 2013				Year Ended December 31, 2012
Net asset value at beginning of period		$	16.79			$	15.58			$	17.72			$	17.56			$	13.49			$	12.68
Income (loss) from investment operations:
Net investment income			0.09				0.27				0.24				0.18				0.17				0.23
Net realized and unrealized gains (losses) on investments			0.82				2.11				(1.27	)			1.46				4.38				1.51
Total from investment operations			0.91				2.38				(1.03	)			1.64				4.55				1.74
Less distributions:
From net investment income			(0.09	)			(0.28	)			(0.23	)			(0.18	)			(0.17	)			(0.23	)
From net realized gains on investments			—				(0.89	)			(0.88	)			(1.30	)			(0.31	)			(0.70	)
Total distributions			(0.09	)			(1.17	)			(1.11	)			(1.48	)			(0.48	)			(0.93	)
Net asset value at end of period		$	17.61			$	16.79			$	15.58			$	17.72			$	17.56			$	13.49
Total return (a)			5.4	%(b)			15.3	%			(5.9	%)			9.3	%			33.9	%			13.9	%
Ratios/Supplementary Data:
Net assets at end of period (000’s)		$	905,241			$	828,649			$	750,890			$	848,096			$	710,150			$	303,909
Ratio of total expenses to average net assets			0.92	%(c)			0.92	%			0.92	%			0.92	%			0.97	%			0.99	%
Ratio of net investment income to average net assets			1.02	%(c)			1.61	%			1.38	%			1.01	%			1.16	%			1.75	%
Portfolio turnover rate			14	%(b)			24	%			35	%			29	%			14	%			37	%

		Six Months Ended June 30, 2017 (Unaudited)				Year Ended December 31, 2016				Year Ended December 31, 2015				Year Ended December 31, 2014				Year Ended December 31, 2013				Year Ended December 31, 2012
Net asset value at beginning of period		$	13.18			$	12.36			$	13.22			$	13.90			$	11.46			$	10.11
Income (loss) from investment operations:
Net investment income			0.06				0.06				0.07				0.04				0.03				0.05
Net realized and unrealized gains (losses) on investments			1.28				1.01				(0.70	)			0.04				2.66				1.35
Total from investment operations			1.34				1.07				(0.63	)			0.08				2.69				1.40
Less distributions:
From net investment income			—				(0.06	)			(0.07	)			(0.04	)			(0.03	)			(0.05	)
From net realized gains on investments			—				(0.19	)			(0.16	)			(0.72	)			(0.22	)			—
Total distributions			—				(0.25	)			(0.23	)			(0.76	)			(0.25	)			(0.05	)
Net asset value at end of period		$	14.52			$	13.18			$	12.36			$	13.22			$	13.90			$	11.46
Total return (a)			10.2	%(b)			8.7	%			(4.8	%)			0.5	%			23.5	%			13.8	%
Ratios/Supplementary Data:
Net assets at end of period (000’s)		$	53,894			$	46,030			$	41,199			$	42,667			$	39,870			$	24,236
Ratio of total expenses to average net assets			1.45	%(c)			1.45	%			1.50	%			1.50	%			1.55	%			1.63	%
Ratio of net expenses to average net assets (d)			1.25	%(c)			1.33	%			1.50	%			1.50	%			1.50	%			1.50	%
Ratio of net investment income to average net assets (d)			0.90	%(c)			0.50	%			0.51	%			0.29	%			0.28	%			0.46	%
Portfolio turnover rate			17	%(b)			42	%			35	%			36	%			31	%			33	%

		Six Months Ended June 30, 2017 (Unaudited)				Year Ended December 31, 2016				Year Ended December 31, 2015				Year Ended December 31, 2014				Year Ended December 31, 2013				Year Ended December 31, 2012
Net asset value at beginning of period		$	11.19			$	11.02			$	11.15			$	11.38			$	11.04			$	10.87
Income (loss) from investment operations:
Net investment income			0.08				0.15				0.14				0.12				0.11				0.18
Net realized and unrealized gains (losses) on investments			0.12				0.35				(0.06	)			0.12				0.56				0.32
Total from investment operations			0.20				0.50				0.08				0.24				0.67				0.50
Less distributions:
From net investment income			(0.08	)			(0.15	)			(0.14	)			(0.12	)			(0.11	)			(0.18	)
From net realized gains on investments			—				(0.18	)			(0.07	)			(0.35	)			(0.22	)			(0.15	)
Total distributions			(0.08	)			(0.33	)			(0.21	)			(0.47	)			(0.33	)			(0.33	)
Net asset value at end of period		$	11.31			$	11.19			$	11.02			$	11.15			$	11.38			$	11.04
Total return (a)			1.8	%(b)			4.5	%			0.7	%			2.2	%			6.1	%			4.6	%
Ratios/Supplementary Data:
Net assets at end of period (000’s)		$	282,208			$	248,971			$	223,842			$	180,718			$	149,750			$	113,043
Ratio of net expenses to average net assets			0.51	%(c)			0.50	%			0.51	%			0.54	%			0.70	%			0.70	%(d)
Ratio of net investment income to average net assets			1.45	%(c)			1.34	%			1.30	%			1.10	%			1.01	%			1.64	%
Portfolio turnover rate			18	%(b)			21	%			25	%			21	%			17	%			21	%

Ave Maria Value Fund		Level 1				Level 2				Level 3				Total
Common Stocks		$	208,357,307			$	—			$	—			$	208,357,307
Warrants			1,152,600				—				—				1,152,600
Money Market Funds			22,962,890				—				—				22,962,890
Total		$	232,472,797			$	—			$	—			$	232,472,797

---

Ave Maria Growth Fund		Level 1				Level 2				Level 3				Total
Common Stocks		$	378,887,792			$	—			$	—			$	378,887,792
Money Market Funds			31,629,074				—				—				31,629,074
Total		$	410,516,866			$	—			$	—			$	410,516,866

---

Ave Maria Rising Dividend Fund		Level 1				Level 2				Level 3				Total
Common Stocks		$	861,087,806			$	—			$	—			$	861,087,806
Money Market Funds			46,339,853				—				—				46,339,853
Total		$	907,427,659			$	—			$	—			$	907,427,659

---

Ave Maria World Equity Fund		Level 1				Level 2				Level 3				Total
Common Stocks		$	50,520,993			$	—			$	—			$	50,520,993
Money Market Funds			3,383,607				—				—				3,383,607
Total		$	53,904,600			$	—			$	—			$	53,904,600

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Ave Maria Bond Fund		Level 1				Level 2				Level 3				Total
U.S. Treasury Obligations		$	—			$	130,414,386			$	—			$	130,414,386
Corporate Bonds			—				99,024,913				—				99,024,913
Common Stocks			46,375,310				—				—				46,375,310
Money Market Funds			4,621,042				—				—				4,621,042
Total		$	50,996,352			$	229,439,299			$	—			$	280,435,651

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		Ave Maria Value Fund				Ave Maria Growth Fund				Ave Maria Rising Dividend Fund				Ave Maria World Equity Fund				Ave Maria Bond Fund
Accumulated ordinary income (loss)		$	(323,365	)		$	82,500			$	(14,702	)		$	222,924			$	(3,294	)
Capital loss carryforwards			(27,437	)			—				—				—				—
Net unrealized appreciation			42,009,720				103,595,954				134,093,844				8,138,038				6,477,270
Accumulated capital and other gains			14,463,712				21,085,806				21,608,842				1,298,272				1,604,937
Total accumulated earnings		$	56,122,630			$	124,764,260			$	155,687,984			$	9,659,234			$	8,078,913

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		Ave Maria Value Fund				Ave Maria Growth Fund				Ave Maria Rising Dividend Fund				Ave Maria World Equity Fund				Ave Maria Bond Fund
Gross unrealized appreciation		$	45,974,212			$	107,858,311			$	155,122,729			$	8,568,234			$	7,938,356
Gross unrealized depreciation			(3,964,492	)			(4,262,357	)			(21,028,885	)			(430,196	)			(1,461,086	)
Net unrealized appreciation		$	42,009,720			$	103,595,954			$	134,093,844			$	8,138,038			$	6,477,270
Federal income tax cost		$	190,463,077			$	306,920,912			$	773,333,815			$	45,766,562			$	273,958,381

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Periods Ended		Ordinary Income				Long-Term Capital Gains				Total Distributions
Ave Maria Growth Fund:
June 30, 2017		$	—			$	—			$	—
December 31, 2016		$	282,281			$	19,858,816			$	20,141,097
Ave Maria Rising Dividend Fund:
June 30, 2017		$	4,523,163			$	—			$	4,523,163
December 31, 2016		$	16,509,599			$	38,296,088			$	54,805,687
Ave Maria World Equity Fund:
June 30, 2017		$	—			$	—			$	—
December 31, 2016		$	214,164			$	662,978			$	877,142
Ave Maria Bond Fund
June 30, 2017		$	1,925,173			$	—			$	1,925,173
December 31, 2016		$	4,368,623			$	2,655,311			$	7,023,934

		December 31, 2019				June 30, 2020				Total
Ave Maria World Equity Fund		$	52,827			$	50,182			$	103,009

		Ave Maria Value Fund				Ave Maria Growth Fund				Ave Maria Rising Dividend Fund				Ave Maria World Equity Fund				Ave Maria Bond Fund
Purchases of investment securities		$	58,121,416			$	60,071,929			$	149,024,556			$	10,047,925			$	10,983,736
Proceeds from sales and maturities of investment securities		$	62,867,273			$	54,588,909			$	117,987,960			$	7,784,740			$	16,361,758

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AVE MARIA VALUE FUND Affiliated Issuer Report

UNICO AMERICAN CORPORATION From December 31, 2016 to June 30, 2017

Shares at beginning of period			282,945
Shares at end of period			282,945
Market value at beginning of period		$	3,041,659
Change in unrealized appreciation (depreciation)			(396,123	)
Market value at end of period		$	2,645,536
Net realized gains (losses) during the period		$	—
Dividend income earned during the period		$	—

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