FAST - Ave Maria Bond Fund Q2 2022 Commentary
- Ave Maria Mutual Funds is a U.S. mutual fund family that takes a pro-life and pro-family approach to investing, with a proprietary screening process. We focus on good investment opportunities for the long-term.
- For the three months ended June 30, 2022, the total return on the Ave Maria Bond Fund (AVEFX) was -3.22%.
- In a rising interest rate environment, the Ave Maria Bond Fund will continue to be managed in a conservative manner by keeping bond maturities short and credit quality high.
For the three months ended June 30, 2022, the total return on the Ave Maria Bond Fund ( AVEFX ) was -3.22%, compared to the Bloomberg Intermediate U.S. Government/Credit Index at -2.37%. The returns for the Fund compared to its benchmark as of June 30, 2022 were:
| Year to Date |
| 1 Yr. |
| 3 Yrs.^ 5 Yrs.^ 10 Yrs.^ |
| Since Inception^* |
| Prospectus Expense Ratio |
| Ave Maria Bond Fund |
| -4.81% |
| -5.09% |
| 2.61% 3.14% 3.33% |
| 3.93% |
| 0.44% |
| Bloomberg Intermediate U.S. Govt./Credit Index |
| -6.77% |
| -7.28% |
| -0.16% 1.13% 1.45% |
| 2.94% |
^ Annualized * Since Inception date is 5-1-2003
Performance data quoted represents past performance, which is no guarantee of future results. Investment return and principal value are historical and may fluctuate so that redemption value may be worth more or less than the original cost. Current performance may be lower or higher than what is quoted. Call 1-866-AVE-MARIA or visit www.avemariafunds.com for the most current month-end performance.
The Fund’s short-duration profile and high quality, dividend-paying common stocks were the main drivers of performance over the benchmark index for the first half of 2022. On an individual security basis, the top contributors were the common stocks of First Horizon National Corporation ( BANK ), Lockheed Martin Corporation ( LMT - defense) and Chevron Corporation ( CVX - integrated oils). The Fund’s weakest performing securities were the common stocks of VF Corporation (apparel & footwear), Watsco, Inc. ( WSO - industrial wholesale) and Fastenal Co. ( FAST - industrial wholesale).
The first half of the year saw a large movement in interest rates across the yield curve. The 10-year Treasury started the year yielding 1.4% and ended June yielding 3%. The Federal Reserve (the Fed), to tame inflation, has increased the Fed Funds rate three times this year (0.25%, 0.50% and 0.75%) with the effective rate currently in the 1.50% to 1.75% range. Additionally, in June, the Fed reinstated Quantitative Tightening (QT) in order to reduce the size of its nearly $9 trillion balance sheet. Until inflation is in check, investors are anticipating more tightening in monetary policy for the remainder of the year.
Market turmoil caused corporate credit spreads to increase, as investors demanded additional compensation for risk. In this light, the Fund was able to add high-quality corporate bonds at attractive prices throughout the first half of the year.
In a rising interest rate environment, the Ave Maria Bond Fund will continue to be managed in a conservative manner by keeping bond maturities short and credit quality high. Additionally, the high quality, dividend-paying common stocks in the Fund continue to offer an attractive combination of income and price appreciation potential.
We appreciate your continued interest in the Ave Maria Bond Fund.
Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.
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Ave Maria Bond Fund Q2 2022 Commentary