VFC - Ave Maria Rising Dividend 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 Rising Dividend Fund (AVEDX) was -11.73%.
- The strongest relative contributors to performance for the first half of the year were from the Energy, Consumer Staples and Industrials sectors.
- The weakest sectorswere Consumer Discretionary and Technology.
For the three months ended June 30, 2022, the total return on the Ave Maria Rising Dividend Fund (AVEDX) was -11.73%, compared to -11.27% for the S&P 500 ® Value Index. The returns for the Ave Maria Rising Dividend 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 Rising Dividend Fund |
| -12.71% |
| -5.99% |
| 8.14% |
| 9.41% |
| 10.93% |
| 9.10% |
| 0.90% |
| S&P 500® Value Index |
| -11.41% |
| -4.86% |
| 8.23% |
| 8.19% |
| 10.97% |
| 7.69% |
| ^ Annualized * Since Inception date is 5-2-2005 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 strongest relative contributors to performance for the first half of the year were from the Energy, Consumer Staples and Industrials sectors. Only the Energy sector posted a positive return, up an impressive 25%. Three holdings made up the sector’s performance, Pioneer Natural Resources Company ( PXD , exploration & production) with a total return of 28%, Chevron Corporation ( CVX, integrated oils) at 26% and Texas Pacific Land Corporation ( TPL , royalty income – real estate) at 21%.
The Industrials and Consumer Staples sectors outperformed the broader market but were down 5.7% and 6.6%, respectively. The Industrials sector held one of the Fund’s best performing stocks, Lockheed Martin Corporation ( LMT , defense), up 22.5% perhaps due to heightened geopolitical tensions.
The weakest sectors were Consumer Discretionary and Technology, down 25% and 22%, respectively. Technology is home to some of the Fund’s more growth-oriented companies, which have underperformed so far this year.
During the first half of the year, two new companies were added to the Fund: Thor Industries, Inc. ( THO , recreational vehicles) and RH ( RH , home products store). Both were beneficiaries of COVID lockdowns and stimulus payments to consumers. Shares of both companies sold off from their highs and are currently out of favor with most investors, which we believe make them deeply undervalued. One stock was eliminated from the Fund, VF Corporation ( VFC , apparel & footwear). Deteriorating fundamentals and sustained weakness in some of the company’s core brands led us to liquidate the position.
The Fund’s investment strategy identifies companies with strong balance sheets that operate with competitive advantages and produce consistent, above-average cash flow and dividend growth, facilitating a rising stream of dividends. We strive to buy these companies when they are unpopular and undervalued.
Thank you for your continued interest in the Ave Maria Rising Dividend Fund.
Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.
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Ave Maria Rising Dividend Fund Q2 2022 Commentary