PHG - Ave Maria World Equity 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 World Equity Fund (AVEWX) was -14.19%.
- Large global markets have performed poorly in the first six months of 2022, which has led to negative total returns.
For the three months ended June 30, 2022, the total return on the Ave Maria World Equity Fund ( AVEWX ) was -14.19%, compared to the MSCI All Country World Index at -15.66%. The returns for the Ave Maria World Equity 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 World Equity Fund |
| -19.56% |
| -13.27% |
| 1.09% |
| 3.89% |
| 6.52% |
| 5.78% |
| 1.02% |
| MSCI All Country World Index |
| -20.18% |
| -15.75% |
| 6.21% |
| 7.00% |
| 8.76% |
| 7.72% |
| ^ Annualized * Since Inception date is 4-30-2010 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. Performance data reflects certain fee waivers and reimbursements. Without such waivers, performance would have been lower. Call 1-866-AVE-MARIA or visit www.avemariafunds.com for the most current month-end performance. The adviser has contractually agreed to limit the Fund’s ordinary operating expenses to an amount not exceeding 1.25% of the Fund’s average daily net assets until at least May 1, 2023. |
Large global markets have performed poorly in the first six months of 2022, which has led to negative total returns.
China provided the least negative return as measured by the S&P China 500 index, which declined 11.48% in U.S. dollars. More broadly, the emerging markets held up better than the developed markets with the MSCI Emerging Market Index declining 17.63% in U.S. dollars.
Japanese stocks, as measured by the Topix 150, declined 19.52% in U.S. dollars. Stocks in the United States and Europe performed the worst with the S&P 500 Index and S&P Europe 350 Index declining 19.96% and 20.11%, respectively.
The Fund outperformed the MSCI ACWI Index by 1.47% in the second quarter of 2022 primarily through stock selection.
| Top contributors to performance during the second quarter of 2022 |
| Coca-Cola Europacific Partners PLC ( CCEP ) |
| +7.42% |
| Edenred S.A. ( EDNMF ) |
| -4.01% |
| Mastercard Incorporated ( MA ) |
| -11.60% |
| Top contributors to performance during the first half of 2022 |
| First Horizon National Corporation ( FHN ) |
| +33.09% |
| Edenred S.A. |
| +3.93% |
| Mastercard Incorporated |
| -11.96% |
Coca-Cola Europacific Partners PLC is the largest global Coca-Cola bottler by revenue. The management team has a track record of creating value for shareholders by consolidating and improving the operations of smaller bottlers. The company has been applying the same playbook to Coca-Cola Amatil, an Australian bottler with operations in 6 countries.
Edenred S.A. is the global leader in the employee benefits market. The company offers over 110 programs offering a variety of benefits such as meal vouchers and commuter benefits. The company is benefiting from the work from home/anywhere phenomenon and the need to retain and attract employees.
Mastercard Incorporated is a global technology company in the payments industry. Mastercard benefits from the secular migration away from cash to electronic payments and from the recovery in travel.
First Horizon Corporation is a leading regional bank that merged with IBERIABANK Corporation in 2020 forming a regional financial services company with 412 branches across 12 southern states. On February 28, 2022, The Toronto-Dominion Bank (TD Bank) reached an agreement with First Horizon Corporation to acquire the bank for $25 per share.
| Bottom contributors to performance during the second quarter of 2022 |
| Pioneer Natural Resources Company ( PXD ) |
| -8.43% |
| Medtronic PLC ( MDT ) |
| -18.49% |
| eDreams ODIGEO S.A. ( EDDRF ) |
| -39.51% |
| Bottom contributors to performance during the first half of 2022 |
| IQVIA Holdings, Inc. ( IQV ) |
| -23.09% |
| S&P Global, Inc. ( SPGI ) |
| -28.27% |
| eDreams ODIGEO S.A. |
| -50.91% |
IQVIA Holdings, Inc. offers data solutions and clinical research services to life science companies. Approximately half of IQVIA’s revenue comes from its contract research organization ((CRO)), which provides support to the pharmaceutical and biotechnology industries in the form of research services outsourced on a contract basis. IQVIA continues to win new contracts and grew its backlog to almost $25 billion.
S&P Global, Inc. is a data-driven financial services company with leading franchises in the areas of data and analytics, credit rating, commodity insights and indices. S&P Global benefits from several secular trends including the disintermediation of banks, a shift to passive investing, and an increased focus on ESG, Climate & Energy Transition.
eDreams ODIGEO is one of the world’s largest online travel companies and one of the largest European e- commerce businesses. eDreams took a page from Amazon ( AMZN ) and launched a prime membership service that offers members reduced rates on travel in exchange for a yearly membership fee. In May 2022, eDream’s prime subscribers reached 2.9 million versus 1.2 million in June 2021.
During the second quarter, the Fund eliminated its positions in Willis Towers Watson Public Limited Company ( WTW ), First Horizon Corporation ( FHN ), and Koninklijke Philips N.V. ( PHG ), while initiating new positions in HDFC Bank Limited ( HDB , Financials), Partners Group Holding AG ( PGPHF , Financials), Mirion Technologies, Inc. ( MIR , Technology) and International Money Express, Inc. ( IMXI , Financials).
Thank you for being a shareholder in the Ave Maria World Equity Fund.
Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.
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Ave Maria World Equity Fund Q2 2022 Commentary