Catholic values-based fund eyeing financial stocks, telecoms

The global markets are flush with opportunities that have been screened for Catholic values, according to Greg Heilman, manager of the new Ave Maria World Equity Fund Ticker:(AVEWX). Mr. Heilman said the fund, launched April 30, was inspired by investor demand for international exposure to stocks that meet investment screens established by the Catholic Advisory Board. The general screens prohibit the fund from investing in companies involved in pornography and abortion-related business. This prevents the Ave Maria funds from investing in most pharmaceutical and many media companies, for example. “Right now, we’re seeing opportunities in non-bank financials, we’re seeing good values in insurance that have become out of favor over the short-term, and a lot of telecom companies have become very attractively priced,” said Mr. Heilman, who also co-manages the $180 million Catholic Values Fund Ticker:(AVEMX). This fund, over the past month, has outperformed the S&P 500 by 1.49 percentage points, according to Morningstar Inc., which ranks it in the top quartile of its peer group during the period. Over the last year, however, the fund has returned 21.74%, which ranks it in the bottom half of its Morningstar peer group. All six Ave Maria funds are managed by the fund family’s investment adviser, Schwartz Investment Counsel Inc., which has $700 million under management. The new fund will hold between 30 and 50 positions across a broad range of market capitalizations, but all shares will be held in U.S. dollars either as American depository receipts or through stocks listed on U.S. exchanges. “We’re not going to make currency calls, because that’s not our expertise, in fact, I’m not sure it’s anybody’s expertise,” Mr. Heilman said. “If, over time, the dollar depreciates, this fund will be a diversifier for a weaker dollar.” Portfolio Manager Perspectives are regular interviews with some of the most respected and influential fund managers in the investment industry. For more information, please visit InvestmentNews.com/pmperspectives.