Schwartz Investment Counsel, which runs the Catholic-values-focused Ave Maria mutual funds, is adequately suited to its responsibilities. It warrants an Average Parent rating.
Based in Plymouth, Michigan, the small firm has effectively transitioned to its next generation of leaders. George Schwartz founded Schwartz Investment Counsel in 1980 and for decades was its majority shareholder, but he has distributed ownership in recent years. In early 2025, for instance, Schwartz transferred controlling interest to his three sons: Timothy (now president and CEO), Michael, and Robert. Overall, about a dozen people have ownership stakes, though the Schwartz family maintains control.
The seven Ave Maria mutual funds, which account for almost all of the firm’s USD 3.9 billion of assets under management, invest according to the teachings of the Roman Catholic Church. In practice, this means they won’t own stocks or other securities issued by companies associated with abortion, pornography, embryonic stem cell research, or Planned Parenthood. These screens don’t filter out too many companies, though they catch some big names in media, technology, and healthcare. Six strategies focus on equities; one invests mainly in fixed-income securities. The investment team is modest in size but sufficient given the firm’s low-turnover, long-term investment style. Each mutual fund also has multiple managers to reduce key-person risk. Compensation could be tied more closely to fund performance to increase alignment with fundholders, however.
Note: This share class' Parent Pillar rating is analyst-driven, as its Branding Name, Ave Maria (Branding Name ID: BN00000BY1), is covered by Morningstar Manager Research.
United States