Ave Maria Mutual Funds is the largest dedicated Catholic mutual fund family in the United States. If you've looked at Catholic investment options, you've probably heard of their flagship fund AVMNX or their dividend-focused product AVEDX. The firm was founded by Tom Monaghan (the Domino's Pizza founder and Ave Maria University benefactor) in 2001 and has grown substantially since then.

Let's look at what they actually do and how their funds work in practice.

The founding story

Tom Monaghan had already founded Domino's Pizza, sold it for over $1 billion, and put most of his wealth into Catholic philanthropic projects when he turned to the investment industry. His goal was to create a mutual fund family that would implement Catholic moral teaching with uncompromising rigor, particularly on life issues that he considered foundational to Catholic identity.

The founding Catholic Advisory Board included several prominent Catholic figures: Phyllis Schlafly (Eagle Forum founder), Larry Kudlow (economic commentator), Melvin Sembler (businessman), and other well-known conservative Catholic voices. This board has evolved over time as members have passed away or stepped down, but the orientation has remained consistent: strict implementation of Catholic moral teaching, with particular emphasis on life issues.

The firm was launched in 2001 with a single fund (Ave Maria Catholic Values Fund, now known as the Ave Maria Value Fund). Assets were modest initially but grew steadily as Catholic investors sought dedicated options that went beyond the partial screening offered by general socially responsible funds.

Today, Ave Maria Mutual Funds manages about $3 billion across its fund lineup, making it the largest Catholic-dedicated mutual fund family. The firm is owned by Schwartz Investment Counsel, a Michigan-based investment advisor that handles portfolio management and operations.

The screening methodology

Ave Maria's screening approach is distinctive because it's more absolutist than many other Catholic fund families. The firm applies strict exclusions on several categories:

Abortion. Any company with meaningful involvement in abortion is excluded. The threshold is effectively zero tolerance, meaning direct provision of abortion, manufacturing of abortifacient products, or significant corporate support for abortion providers triggers exclusion.

Contraception. Any company manufacturing contraceptive products is excluded. Ave Maria applies this more strictly than the 5 percent revenue threshold some Catholic funds use. Even small contraceptive exposure can trigger exclusion.

Pornography. Companies with meaningful involvement in pornography production or distribution are excluded. This includes some media and hotel chains that other Catholic funds might include after those companies' exit from adult entertainment.

Embryonic stem cell research. Companies with direct involvement in destructive embryonic research are excluded. The treatment of historical fetal cell line use is more nuanced.

The screening is implemented through a research process that includes ongoing monitoring of corporate behavior, policy changes, and product pipelines. The firm maintains an internal database of screened companies and updates positions as circumstances change.

One thing that distinguishes Ave Maria from some other Catholic fund families is its explicit focus on life issues as the primary screening consideration. While the firm does consider environmental and labor concerns, these are secondary to the life screens in the methodology. This reflects a particular theological emphasis rather than a rejection of broader Catholic social teaching.

The fund lineup

Ave Maria currently offers several mutual funds, each with a different investment approach but the same underlying Catholic screening:

Ave Maria Value Fund (AVEMX) is the original fund and focuses on value-oriented U.S. large-cap stocks. It applies traditional value investing principles (buying stocks that appear undervalued relative to fundamentals) while maintaining Catholic screening.

Ave Maria Growth Fund (AVEGX) focuses on growth-oriented U.S. stocks with Catholic screening. It targets companies with strong earnings growth potential and growing market positions.

Ave Maria Rising Dividend Fund (AVEDX) is one of the firm's largest funds and focuses on dividend-paying stocks with records of dividend growth. This fund is popular with income-oriented investors who want Catholic screening alongside dividend income.

Ave Maria Bond Fund (AVEFX) provides fixed income exposure with Catholic considerations, primarily by avoiding bonds of companies that fail Ave Maria's equity screens.

Ave Maria World Equity Fund (AVEWX) provides international exposure with Catholic screening applied to developed international markets.

Ave Maria Focused Fund (AVEAX) is a more concentrated portfolio focusing on the firm's highest-conviction holdings.

The ticker AVMNX that many people search for is actually the Ave Maria Money Market Fund or a share class designation for one of the flagship funds, depending on context. The core products are typically the Value, Growth, Rising Dividend, and Bond funds.

The Rising Dividend Fund in detail

Because AVEDX is one of the most commonly held Ave Maria funds, it's worth understanding how it actually works.

The fund focuses on dividend-paying U.S. stocks that meet both Catholic screening criteria and the fund's dividend requirements. The fund typically holds 60 to 80 stocks, which is a focused portfolio compared to diversified mutual funds but reasonable for active management.

Top holdings have historically included names like:

Microsoft (MSFT), which passes Catholic screening and has a strong dividend growth record
Procter & Gamble (PG), though with ongoing review of its product portfolio
Walmart (WMT), depending on the analysis of labor practices
Coca-Cola (KO), which has been a traditional dividend stock
Honeywell International (HON), which provides industrial exposure
Various financial services companies that pass Catholic screens

The fund's approach blends dividend growth investing (which has historically produced strong long-term returns) with Catholic screening. The two approaches are generally compatible because dividend aristocrats tend to be large, established companies that can survive Catholic screening even when some sectors (like big pharma) are excluded.

Performance has generally been competitive with dividend growth benchmarks over long periods, though the expense ratio of about 0.95 percent is higher than passive dividend ETFs like the Vanguard Dividend Appreciation ETF (VIG).

The exclusion list in practice

Ave Maria publishes its exclusion list, which gives Catholic investors visibility into which companies the firm has excluded. The list typically runs to several hundred companies and includes:

Pharmaceutical giants: Johnson & Johnson (JNJ), Pfizer (PFE), Merck (MRK), Bayer (BAYRY), Teva (TEVA), and most major pharma names.

Technology companies with abortion-related benefits: Including some major technology companies, though the specific exclusions vary.

Media and entertainment companies with problematic content: Including some major entertainment conglomerates.

Certain retailers and consumer companies based on corporate policies and donations.

Major defense contractors: Lockheed Martin (LMT), Raytheon (RTX), Northrop Grumman (NOC), and General Dynamics (GD) are typically excluded.

Companies with severe environmental or labor issues, though these exclusions are applied more selectively.

The exclusion list is public-facing, which creates accountability and allows investors to understand exactly what they're buying. Some Catholic fund managers keep their exclusion lists proprietary; Ave Maria's transparency on this is a useful feature.

Performance characteristics

Ave Maria funds have generally performed within the normal range for actively managed mutual funds in their respective categories. The Value Fund has tracked reasonably close to large-cap value benchmarks, the Growth Fund has tracked growth benchmarks, and the Rising Dividend Fund has tracked dividend growth benchmarks.

The tracking error versus unscreened benchmarks is real but manageable. Over multi-year periods, Ave Maria funds typically perform within 1 to 2 percentage points of their benchmarks, sometimes above and sometimes below depending on sector dynamics.

The main structural drag on Ave Maria fund performance is the underweight to healthcare (from the big pharma exclusions) and the exclusion of certain dividend aristocrats that fail Catholic screens. These positions are usually filled with substitute names that may or may not perform as well as what they replace.

Expense ratios are higher than passive alternatives but competitive with other actively managed mutual funds, typically 0.85 to 1.25 percent depending on the fund.

The retail investor advantage

For retail Catholic investors, Ave Maria funds offer several practical advantages over trying to build a custom screened portfolio:

Simplicity. You buy one fund and you get Catholic screening applied to your entire equity allocation. No need to research individual stocks or maintain an exclusion list.

Professional management. The firm has professional portfolio managers and research analysts who do the ongoing work of screening and portfolio construction.

Broad availability. Ave Maria funds are available on most major brokerage platforms, making them easy to purchase and hold.

Transparency. Public exclusion lists and regular commentary make it clear what you're getting.

Tax efficiency. Mutual fund structure has some advantages and disadvantages for taxes compared to direct stock ownership.

The disadvantages are higher expense ratios than passive ETFs, less customization than direct stock selection, and potential performance dispersion versus broad market benchmarks.

The theological framing

Ave Maria's theological framing of its investment approach draws explicitly from Catholic moral teaching. The firm regularly cites encyclicals including Humanae Vitae (Paul VI, 1968) on contraception, Evangelium Vitae (John Paul II, 1995) on life issues, and the Catechism of the Catholic Church on various specific moral questions.

The framework treats investing as a form of cooperation with the companies whose stock you own. The Catechism paragraph 2487 discusses cooperation in sin, and Ave Maria applies this to investment decisions: owning stock in a company whose products violate Catholic teaching is a form of material cooperation that requires proportionate reason to be morally permissible.

For the life issues specifically, Ave Maria takes the position that there's no proportionate reason sufficient to justify ownership of companies directly involved in abortion or contraception. The moral gravity of these issues, as taught in Evangelium Vitae paragraph 62 and Humanae Vitae paragraph 11, makes the cooperation impermissible regardless of financial considerations.

This is a more absolutist position than some other Catholic fund managers take. It's defensible theologically and it reflects a particular school of thought within Catholic moral reasoning. Investors who prefer a more flexible approach might choose other Catholic fund families; investors who want rigor on life issues specifically often prefer Ave Maria.

Comparing to other Catholic funds

How does Ave Maria compare to Knights of Columbus funds, Catholic Responsible Investments, and other Catholic fund families?

Ave Maria is typically the most absolutist on life issues. It applies strict exclusions without revenue thresholds for some categories.

Knights of Columbus takes a more balanced approach that includes engagement alongside exclusion.

Catholic Responsible Investments (through funds like CRIEX) tries to track broader market benchmarks while applying Catholic screening, which means more holdings but potentially less screening rigor.

Christian Brothers Investment Services operates primarily in the institutional space and focuses on custom solutions.

Each approach has merits. The right choice depends on your particular theological emphasis, your tolerance for tracking error, and your preference for passive versus active management.

The founder's legacy

Tom Monaghan has stepped back from day-to-day involvement with Ave Maria Mutual Funds, though he remains a presence in the broader Ave Maria organization (which includes Ave Maria University, Ave Maria Law School, and other institutions). The investment firm continues under Schwartz Investment Counsel's management.

The funds themselves have outlived the founder's active involvement because the methodology and discipline are now institutional rather than personal. This is a sign of maturity in the Catholic investing space: the work continues even when individual founders move on.

Monaghan's vision of uncompromising Catholic investing shaped the firm's identity and continues to influence how the funds operate. Whether you agree with every specific screening decision, the sustained effort to implement Catholic teaching through mutual fund products is a significant contribution to Catholic investing as a discipline.

Who should use Ave Maria funds

Ave Maria Mutual Funds are probably the right choice for Catholic investors who:

Want strict application of life-issue screening without compromise
Prefer simplicity of buying one fund over building custom portfolios
Are willing to pay active management fees for professional screening
Accept modest tracking error versus broad market benchmarks
Value transparency about exclusion decisions
Want to support Catholic-dedicated asset management

They're probably not the right choice for investors who want the absolute lowest fees (passive ETFs are cheaper), who want the tightest index tracking (Catholic Responsible Investments might track more closely), or who want a more engagement-focused approach (Knights of Columbus might suit better).

For many Catholic investors, Ave Maria funds are a reasonable default option that handles the screening work and lets you focus on your life rather than your portfolio. That's valuable even if it's not the only valid approach to Catholic investing.

Ave Maria Mutual Funds (AVMNX): The Largest Catholic Fund Family