N-CSR

OMB APPROVAL

OMB Number: 3235-0570

Expires: August 31, 2011

Estimated average burden hours per response: 18.9

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number ___811-07148________________________

Schwartz Investment Trust

(Exact name of registrant as specified in charter)

3707 West Maple Road, Suite 100        Bloomfield Hills, Michigan	48301
(Address of principal executive offices)	(Zip code)

George P. Schwartz

Schwartz Investment Counsel, Inc.  3707 W. Maple Road   Bloomfield Hills, MI 48301

(Name and address of agent for service)

Registrant's telephone number, including area code:  (248) 644-8500

Date of fiscal year end:         December 31, 2009                                                                                                                                

Date of reporting period:       December 31, 2009                                                                                                                                

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

Item 1.  Reports to Stockholders.

Shareholder Accounts c/o Ultimus Fund Solutions, LLC P.O. Box 46707 Cincinnati, OH 45246 (888) 726-0753   Corporate Offices 3707 W. Maple Road Suite 100 Bloomfield Hills, MI 48301

Schwartz Value Fund

Dear Fellow Shareowner:

What a difference a year makes!  Last year at this time, amidst the worst financial crisis since the 1930s, the economy was sharply contracting and stock prices were plunging daily.  The capital markets were in disarray.  Apprehensive consumers and fearful investors were pessimistic about the present and worried about the future.  Some pundits warned the U.S. was on the brink of another Great Depression.    Not surprisingly, petrified stock market participants were aggressively liquidating their equity portfolios.  But guess what?  They should have been buying.  It was the ideal buying point – perhaps the buying opportunity of a lifetime.  The best investment opportunities always occur at the bleakest moments.  Wise investors take advantage of the low prices, which accompany bad times, to buy while the masses are selling.

After bottoming in March last year, the stock market caught fire and ended the year with impressive gains.  For the year ended December 31, 2009, the Dow Jones Industrial Average rose 18.9%, the S&P 500 gained 26.5% and the Russell 2000 Index advanced 27.2%.  The Schwartz Value Fund (the “Fund”) outperformed these indices, rising 34.8%, which was the Fund’s second best annual performance in its 26-year history.  From the March low, the Fund’s biggest winners included Sparton Corporation +327% (electronic manufacturing services), Signet Jewelers Ltd. +280% (jewelry retailer), Nabors Industries Ltd. +150% (oil & gas drilling), and Leucadia National Corporation +117% (diversified investment company).  Holdings which had a negative impact on performance during the year included Weyco Group, Inc. (shoe retailing), Nintendo Company Ltd. (video game hardware & software), and Comerica, Inc. (financial services).

After March 2009, the equity markets blazed skyward, as fear and pessimism were replaced by optimism.  Unprecedented government intervention helped avert a complete financial market meltdown.  The U.S. Treasury and Federal Reserve pumped massive amounts of liquidity into the system.  Fear of Great Depression II subsided and the improving economic outlook along with a steadily rising stock market had investors energized and confident by year end.  Heading into 2010, institutional investors on average are quite optimistic.  This high level of bullish sentiment has us somewhat cautious.  As Warren Buffett famously advises, “Be greedy when others are fearful and be fearful when others are greedy.”  In this regard, it’s important to remember that the future rate of return on any investment is related to the price paid.   The higher the price paid, the lower the rate of return

1

will be in the future.  Based solely on today’s higher prices, outsized gains like 2009’s are not likely this year.  Stock prices already reflect a healthy, sustained economic rebound, which may or may not materialize in 2010.

In managing the portfolio, we are emphasizing high quality, cash-rich companies with rock solid balance sheets, which enhances their ability to pay dividends.    Due to the broad-based stock market rally of 2009, the number of new, attractive investment opportunities has diminished.  However, we continue to find companies selling well below our estimate of their intrinsic value.  Recent purchases that meet our investment criteria include Lancaster Colony Corporation (specialty food manufacturing), STERIS Corporation (specialty health-care products), and Sysco Corporation (foodservice distribution).  We are excited about the share price appreciation potential of these companies and many others in the Fund.

It recently came to our attention that there are now only four U.S. companies with AAA-rated bonds: Automatic Data Processing, Inc., Exxon Mobil Corporation, Johnson & Johnson, and Microsoft Corporation.  By coincidence, the Schwartz Value Fund owns stock in all four of these companies.  That reflects the aforementioned emphasis we are putting on higher quality companies.  They don’t get any higher in quality than these four.

Thanks for being a shareholder of the Schwartz Value Fund.

With best regards,

George P. Schwartz, CFA	Timothy S. Schwartz, CFA
Co-Portfolio Manager	Co-Portfolio Manager

January 18, 2010

2

Past performance is not predictive of future performance. Investment results and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data quoted. Performance data, current to the most recent month end, are available by calling the Fund at 1-888-726-0753.

An investor should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. The Fund’s prospectus contains this and other important information. To obtain a copy of the prospectus please visit our website at www.schwartzvaluefund.com or call 1-888-726-0753 and a copy will be sent to you free of charge. Please read the prospectus carefully before you invest.  The Schwartz Value Fund is distributed by Ultimus Fund Distributors, LLC.

The Letter to Shareholders seeks to describe some of the Adviser’s current opinions and views of the financial markets. Although the Adviser believes it has a reasonable basis for any opinions or views expressed, actual results may differ, sometimes significantly so, from those expected or expressed.

3

SCHWARTZ VALUE FUND

PERFORMANCE (Unaudited)

Comparison of the Change in Value of a $10,000 Investment

in the Schwartz Value Fund and the Russell 2000 Index

(a) The returns shown do not reflect the deduction of taxes a shareholder would pay on Fund distributions or the redemption of Fund shares.

Expense Ratio information as of:	12-31-08 (as disclosed in May 1, 2009 prospectus)	12-31-09
Gross	1.45%	1.55%

This report is for the information of shareholders, but it may also be used as sales literature when preceded or accompanied by a current prospectus, which gives details about charges, expenses, investment objectives and operating policies of the Fund. The Fund is distributed by Ultimus Fund Distributors, LLC.

4

SCHWARTZ VALUE FUND

ANNUAL TOTAL RATES OF RETURN

COMPARISON WITH MAJOR INDICES (Unaudited)

	SCHWARTZ VALUE FUND(a)			RUSSELL 2000 INDEX			RUSSELL 2000 VALUE INDEX			RUSSELL 2000 GROWTH INDEX			NASDAQ COMPOSITE(b)			VALUE LINE COMPOSITE(b)			S&P 500 INDEX
1984		11.1	%		-7.3	%		2.3	%		-15.8	%		-11.2	%		-8.4	%		6.1	%
1985		21.7	%		31.1	%		31.0	%		31.0	%		31.4	%		20.7	%		31.6	%
1986		16.4	%		5.7	%		7.4	%		3.6	%		7.4	%		5.0	%		18.7	%
1987		-0.6	%		-8.8	%		-7.1	%		-10.5	%		-5.3	%		-10.6	%		5.3	%
1988		23.1	%		24.9	%		29.5	%		20.4	%		15.4	%		15.4	%		16.8	%
1989		8.3	%		16.2	%		12.4	%		20.2	%		19.3	%		11.2	%		31.6	%
1990		-5.3	%		-19.5	%		-21.8	%		-17.4	%		-17.8	%		-24.3	%		-3.2	%
1991		32.0	%		46.1	%		41.7	%		51.2	%		56.8	%		27.2	%		30.4	%
1992		22.7	%		18.4	%		29.1	%		7.8	%		15.5	%		7.0	%		7.6	%
1993		20.5	%		18.9	%		23.8	%		13.4	%		14.7	%		10.7	%		10.1	%
1994		-6.8	%		-1.8	%		-1.6	%		-2.4	%		-3.2	%		-6.0	%		1.3	%
1995		16.9	%		28.4	%		25.8	%		31.0	%		39.9	%		19.3	%		37.5	%
1996		18.3	%		16.5	%		21.4	%		11.3	%		22.7	%		13.4	%		22.9	%
1997		28.0	%		22.4	%		31.8	%		13.0	%		21.6	%		21.1	%		33.4	%
1998		-10.4	%		-2.5	%		-6.5	%		1.2	%		39.6	%		-3.8	%		28.6	%
1999		-2.5	%		21.3	%		-1.5	%		43.1	%		85.6	%		-1.4	%		21.0	%
2000		9.3	%		-3.0	%		22.8	%		-22.4	%		-39.3	%		-8.7	%		-9.1	%
2001		28.1	%		2.5	%		14.0	%		-9.2	%		-21.0	%		-6.1	%		-11.9	%
2002		-14.9	%		-20.5	%		-11.4	%		-30.3	%		-31.5	%		-28.6	%		-22.1	%
2003		39.3	%		47.3	%		46.0	%		48.5	%		50.0	%		37.4	%		28.7	%
2004		22.6	%		18.3	%		22.3	%		14.3	%		8.6	%		11.5	%		10.9	%
2005		3.8	%		4.6	%		4.7	%		4.2	%		1.4	%		2.0	%		4.9	%
2006		14.3	%		18.4	%		23.5	%		13.4	%		9.5	%		11.0	%		15.8	%
2007		-11.1	%		-1.6	%		-9.8	%		7.1	%		9.8	%		-3.8	%		5.5	%
2008		-35.9	%		-33.8	%		-28.9	%		-38.5	%		-40.5	%		-48.7	%		-37.0	%
2009		34.8	%		27.2	%		20.6	%		34.5	%		43.9	%		36.8	%		26.5	%

AVERAGE ANNUAL TOTAL RETURNS

As of December 31, 2009 (Unaudited)

	SCHWARTZ VALUE FUND(a)			RUSSELL 2000 INDEX			RUSSELL 2000 VALUE INDEX			RUSSELL 2000 GROWTH INDEX			NASDAQ COMPOSITE(b)			VALUE LINE COMPOSITE(b)			S&P 500 INDEX
3 Years		-8.4	%		-6.1	%		-8.2	%		-4.0	%		-2.1	%		-12.3	%		-5.6	%
5 Years		-1.8	%		0.5	%		-0.0	%		0.9	%		0.9	%		-5.2	%		0.4	%
10 Years		6.4	%		3.5	%		8.3	%		-1.4	%		-5.7	%		-3.3	%		-1.0	%
26 Years		9.4	%		8.6	%		10.7	%		6.0	%		8.4	%		1.8	%		10.4	%

(a)	Schwartz Value Fund’s performance combines the performance of the Fund since its commencement of operations as a registered investment company on July 20, 1993, and the performance of RCM Partners Limited Partnership for periods prior thereto.
(b)	Excluding dividends.

5

SCHWARTZ VALUE FUND

TEN LARGEST EQUITY HOLDINGS

December 31, 2009 (Unaudited)

Shares		Company	Market Value		% of Net Assets
	182,700	Unico American Corporation	$	1,885,464		5.5	%
	55,000	Federated Investors, Inc. - Class B		1,512,500		4.4	%
	44,000	Nintendo Company Ltd. - ADR		1,312,080		3.8	%
	45,000	Sysco Corporation		1,257,300		3.7	%
	10,000	SPDR Gold Trust		1,073,100		3.1	%
	25,000	Accenture PLC - Class A		1,037,500		3.0	%
	140,000	Meadowbrook Insurance Group, Inc.		1,036,000		3.0	%
	10	Berkshire Hathaway, Inc. - Class A		992,000		2.9	%
	20,000	Varian Medical Systems, Inc.		937,000		2.7	%
	30,000	Microsoft Corporation		914,700		2.7	%

ASSET ALLOCATION  (Unaudited)

Sector	% of Net Assets
Consumer Discretionary		3.7	%
Consumer Staples		9.8	%
Energy		13.3	%
Financials		23.1	%
Health Care		10.1	%
Industrials		6.2	%
Information Technology		16.2	%
Exchange-Traded Funds		3.1	%
Cash Equivalents, Other Assets and Liabilities		14.5	%
		100.0	%

6

SCHWARTZ VALUE FUND

SCHEDULE OF INVESTMENTS

December 31, 2009

COMMON STOCKS — 82.4%	Shares		Market Value
Consumer Discretionary — 3.7%
Diversified Consumer Services — 0.1%
Strayer Education, Inc.		200	$	42,498
Internet & Catalog Retail — 0.5%
Stamps.com, Inc. *		20,110		180,990
Specialty Retail — 1.7%
Ross Stores, Inc.		4,000		170,840
Signet Jewelers Ltd. *		15,000		400,800
				571,640
Textiles, Apparel & Luxury Goods — 1.4%
K-Swiss, Inc. - Class A *		1,000		9,940
Weyco Group, Inc.		20,000		472,800
				482,740
Consumer Staples — 9.8%
Beverages — 1.7%
Coca-Cola Company (The)		10,000		570,000
Food & Staples Retailing — 5.8%
Kroger Company (The)		10,000		205,300
Sysco Corporation		45,000		1,257,300
Wal-Mart Stores, Inc.		10,000		534,500
				1,997,100
Food Products — 2.3%
Lancaster Colony Corporation		16,000		795,200
Energy — 13.3%
Energy Equipment & Services — 8.3%
Atwood Oceanics, Inc. *		7,500		268,875
Ensco International PLC - ADR		10,000		399,400
Halliburton Company		8,500		255,765
Nabors Industries Ltd. *		15,000		328,350
National Oilwell Varco, Inc.		10,000		440,900
Patterson-UTI Energy, Inc.		32,500		498,875
Rowan Companies, Inc. *		15,000		339,600
Schlumberger Ltd.		5,000		325,450
				2,857,215
Oil, Gas & Consumable Fuels — 5.0%
Exxon Mobil Corporation		6,000		409,140
Peabody Energy Corporation		5,000		226,050
Rosetta Resources, Inc. *		25,000		498,250
Suncor Energy, Inc.		5,000		176,550
XTO Energy, Inc.		8,500		395,505
				1,705,495

7

SCHWARTZ VALUE FUND

SCHEDULE OF INVESTMENTS (Continued)

COMMON STOCKS — 82.4% (Continued)	Shares		Market Value
Financials — 23.1%
Capital Markets — 5.3%
Federated Investors, Inc. - Class B		55,000	$	1,512,500
Investment Technology Group, Inc. *		16,000		315,200
				1,827,700
Commercial Banks — 0.4%
Comerica, Inc.		5,000		147,850
Diversified Financial Services — 3.4%
Dun & Bradstreet Corporation (The)		4,000		337,480
Leucadia National Corporation *		10,000		237,900
Morningstar, Inc. *		3,000		145,020
Pico Holdings, Inc. *		10,000		327,300
Value Line, Inc.		5,150		129,316
				1,177,016
Insurance — 14.0%
Alleghany Corporation *		2,030		560,280
Berkshire Hathaway, Inc. - Class A *		10		992,000
Markel Corporation *		1,000		340,000
Meadowbrook Insurance Group, Inc.		140,000		1,036,000
Unico American Corporation		182,700		1,885,464
				4,813,744
Health Care — 10.1%
Health Care Equipment & Supplies — 6.1%
Kinetic Concepts, Inc. *		7,400		278,610
STERIS Corporation		4,000		111,880
Stryker Corporation		15,000		755,550
Varian Medical Systems, Inc. *		20,000		937,000
				2,083,040
Pharmaceuticals — 4.0%
Johnson & Johnson		10,000		644,100
Pfizer, Inc.		40,000		727,600
				1,371,700
Industrials — 6.2%
Aerospace & Defense — 6.2%
Boeing Company (The)		5,000		270,650
Northrop Grumman Corporation		10,000		558,500
Rockwell Collins, Inc.		15,000		830,400
Sparton Corporation *		80,039		483,436
				2,142,986
Information Technology — 16.2%
Computers & Peripherals — 1.4%
Teradata Corporation *		15,000		471,450
Electronic Equipment, Instruments & Components — 2.8%
Arrow Electronics, Inc. *		10,000		296,100
Avnet, Inc. *		10,000		301,600
Ingram Micro, Inc. - Class A *		20,000		349,000
				946,700

8

SCHWARTZ VALUE FUND

SCHEDULE OF INVESTMENTS (Continued)

COMMON STOCKS — 82.4% (Continued)	Shares		Market Value
Information Technology — 16.2% (Continued)
IT Services — 5.5%
Accenture PLC - Class A		25,000	$	1,037,500
Automatic Data Processing, Inc.		20,000		856,400
				1,893,900
Software — 6.5%
Microsoft Corporation		30,000		914,700
Nintendo Company Ltd. - ADR		44,000		1,312,080
				2,226,780
Total Common Stocks (Cost $20,987,301)			$	28,305,744

EXCHANGE-TRADED FUNDS — 3.1%	Shares		Market Value
SPDR Gold Trust * (Cost $815,427)		10,000	$	1,073,100

OPEN-END FUNDS — 0.0%	Shares		Market Value
Sequoia Fund (Cost $7,909)		61	$	6,655

MONEY MARKET FUNDS — 14.4%	Shares		Market Value
Federated Government Obligations Tax-Managed Fund - Institutional Shares, 0.03% (a)		1,674,635	$	1,674,635
Federated Treasury Obligations Fund - Institutional Shares, 0.01% (a)		1,595,869		1,595,869
Federated U.S. Treasury Cash Reserve Fund - Institutional Shares, 0.00% (a)		1,674,634		1,674,634
Total Money Market Funds (Cost $4,945,138)			$	4,945,138
Total Investments at Market Value — 99.9% (Cost $26,755,775)			$	34,330,637
Other Assets in Excess of Liabilities — 0.1%				38,492
Net Assets — 100.0%			$	34,369,129

ADR - American Depositary Receipt.

*	Non-income producing security.
(a)	The rate shown is the 7-day effective yield as of December 31, 2009.

See notes to financial statements.

9

SCHWARTZ VALUE FUND

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2009

ASSETS
Investments, at market value (cost of $26,755,775) (Note 1)	$	34,330,637
Receivable for capital shares sold		123
Receivable for investment securities sold		96,159
Dividends receivable		28,486
Other assets		17,749
TOTAL ASSETS		34,473,154
LIABILITIES
Payable for capital shares redeemed		1,200
Payable to Adviser (Note 2)		84,562
Payable to administrator (Note 2)		4,200
Other accrued expenses		14,063
TOTAL LIABILITIES		104,025
NET ASSETS	$	34,369,129
NET ASSETS CONSIST OF:
Paid-in capital	$	39,166,297
Accumulated net realized losses from security transactions		(12,372,030	)
Net unrealized appreciation on investments		7,574,862
NET ASSETS	$	34,369,129
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value)		1,805,361
Net asset value, offering price and redemption price per share	$	19.04

See notes to financial statements.

10

SCHWARTZ VALUE FUND

STATEMENT OF OPERATIONS

For the Year Ended December 31, 2009

INVESTMENT INCOME
Dividends (Net of foreign tax of $2,061)	$	429,114
Interest		26
TOTAL INCOME		429,140
EXPENSES
Investment advisory fees (Note 2)		290,268
Administration, accounting and transfer agent fees (Note 2)		48,500
Trustees’ fees and expenses		29,346
Legal and audit fees		27,094
Registration fees		18,375
Custodian and bank service fees		7,933
Postage and supplies		7,831
Insurance expense		3,755
Compliance service fees (Note 2)		1,755
Other expenses		15,261
TOTAL EXPENSES		450,118
NET INVESTMENT LOSS		(20,978	)
REALIZED AND UNREALIZED GAINS/(LOSSES) ON INVESTMENTS
Net realized losses from security transactions		(2,434,233	)
Net change in unrealized appreciation/(depreciation) on investments		11,299,767
NET REALIZED AND UNREALIZED GAINS ON INVESTMENTS		8,865,534
NET INCREASE IN NET ASSETS FROM OPERATIONS	$	8,844,556

See notes to financial statements.

11

SCHWARTZ VALUE FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended December 31, 2009			Year Ended December 31, 2008
FROM OPERATIONS
Net investment income/(loss)	$	(20,978	)	$	131,589
Net realized losses from security transactions		(2,434,233	)		(9,855,131	)
Net change in unrealized appreciation/(depreciation) on investments		11,299,767			(7,432,185	)
Net increase (decrease) in net assets from operations		8,844,556			(17,155,727	)
FROM DISTRIBUTIONS TO SHAREHOLDERS
From net investment income		—			(131,608	)
From net realized gains on investments		—			(37	)
Decrease in net assets from distributions to shareholders		—			(131,645	)
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold		1,759,557			1,375,492
Reinvestment of distributions to shareholders		—			108,071
Payments for shares redeemed		(3,724,792	)		(11,569,459	)
Net decrease in net assets from capital share transactions		(1,965,235	)		(10,085,896	)
TOTAL INCREASE (DECREASE) IN NET ASSETS		6,879,321			(27,373,268	)
NET ASSETS
Beginning of year		27,489,808			54,863,076
End of year	$	34,369,129		$	27,489,808
ACCUMULATED NET INVESTMENT INCOME	$	—		$	—
SUMMARY OF CAPITAL SHARE ACTIVITY
Shares sold		101,406			72,827
Shares issued in reinvestment of distributions to shareholders		—			7,871
Shares redeemed		(242,708	)		(611,212	)
Net decrease in shares outstanding		(141,302	)		(530,514	)
Shares outstanding, beginning of year		1,946,663			2,477,177
Shares outstanding, end of year		1,805,361			1,946,663

See notes to financial statements.

12

SCHWARTZ VALUE FUND

FINANCIAL HIGHLIGHTS

Per Share Data for a Share Outstanding Throughout Each Year

	Year Ended Dec. 31, 2009			Year Ended Dec. 31, 2008			Year Ended Dec. 31, 2007			Year Ended Dec. 31, 2006			Year Ended Dec. 31, 2005
Net asset value at beginning of year	$	14.12		$	22.15		$	25.52		$	25.44		$	27.04
Income/(loss) from investment operations:
Net investment income/(loss)		(0.01	)		0.07			(0.00	)(a)		(0.09	)		(0.17	)
Net realized and unrealized gains/(losses) on investments		4.93			(8.03	)		(2.82	)		3.74			1.23
Total from investment operations		4.92			(7.96	)		(2.82	)		3.65			1.06
Less distributions:
From net investment income		—			(0.07	)		—			—			—
From net realized gains on investments		—			(0.00	)(a)		(0.55	)		(3.57	)		(2.66	)
Total distributions		—			(0.07	)		(0.55	)		(3.57	)		(2.66	)
Net asset value at end of year	$	19.04		$	14.12		$	22.15		$	25.52		$	25.44
Total return (b)		34.8%			(35.9%	)		(11.1%	)		14.3%			3.8%
Ratios/Supplementary Data:
Net assets at end of year (000’s)	$	34,369		$	27,490		$	54,863		$	68,408		$	69,486
Ratio of expenses to average net assets		1.55%			1.43%			1.34%			1.38%			1.61%
Ratio of net investment income/(loss) to average net assets		(0.07)%			0.33%			(0.00)%			(0.35)%			(0.65)%
Portfolio turnover rate		73%			150%			78%			82%			78%

(a)	Amount rounds to less than $0.01 per share.
(b)	Total return is a measure of the change in value of an investment in the Fund over the years covered, which assumes any dividends or capital gains distributions are reinvested in shares of the Fund. Returns shown do not reflect the deduction of taxes a shareholder would pay on Fund distributions or the redemption of Fund shares.

See notes to financial statements.

13

SCHWARTZ VALUE FUND

NOTES TO FINANCIAL STATEMENTS

December 31, 2009

1.   Significant Accounting Policies

Schwartz Value Fund (the “Fund”) is a diversified series of Schwartz Investment Trust (the “Trust”), an open-end management investment company established as an Ohio business trust under a Declaration of Trust dated August 31, 1992.  The Fund is registered under the Investment Company Act of 1940 and commenced operations on July 20, 1993.  The Fund determines and makes available for publication the net asset value of its shares on a daily basis.

The investment objective of the Fund is to seek long-term capital appreciation.  See the Prospectus for information regarding the principal investment strategies of the Fund.

Shares of the Fund are sold at net asset value.  To calculate the net asset value, the Fund’s assets are valued and totaled, liabilities are subtracted, and the balance is divided by the number of shares outstanding.  The offering price and redemption price per share are equal to the net asset value per share.

The following is a summary of significant accounting policies followed by the Fund:

(a) Valuation of investments — Securities which are traded on stock exchanges, other than NASDAQ, are valued at the closing sales price as of the close of the regular session of trading on the New York Stock Exchange on the day the securities are being valued, or, if not traded on a particular day, at the closing bid price.  Securities which are quoted by NASDAQ are valued at the NASDAQ Official Closing Price. Securities traded in the over-the-counter market are valued at the last reported sales price or, if there is no reported sale on the valuation date, at the most recently quoted bid. Securities which are traded both in the over-the-counter market and on a stock exchange are valued according to the broadest and most representative market.  Investments representing shares of other open-end investment companies are valued at their net asset value as reported by such companies. Securities (and other assets) for which market quotations are not readily available are valued at their fair value as determined in good faith in accordance with consistently applied procedures established by and under the general supervision of the Board of Trustees. Short-term instruments (those with remaining maturities of 60 days or less) are valued at amortized cost, which approximates market value.

Accounting principles generally accepted in the United States (“GAAP”) establish a single authoritative definition of fair value, set out a framework for measuring fair value and require additional disclosures about fair value measurements.

Various inputs are used in determining the value of the Fund’s investments.  These inputs are summarized in the three broad levels listed below:

•   Level 1 – quoted prices in active markets for identical securities

•   Level 2 – other significant observable inputs

•   Level 3 – significant unobservable inputs

14

SCHWARTZ VALUE FUND

NOTES TO FINANCIAL STATEMENTS (Continued)

The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities.

The following is a summary of the inputs used to value the Fund’s investments by security type, as of December 31, 2009:

	Level 1		Level 2		Level 3		Total
Common Stocks	$	28,305,744	$	—	$	—	$	28,305,744
Exchange-Traded Funds		1,073,100		—		—		1,073,100
Open-End Funds		6,655		—		—		6,655
Money Market Funds		4,945,138		—		—		4,945,138
Total	$	34,330,637	$	—	$	—	$	34,330,637

Refer to the Fund’s Schedule of Investments for a listing of the common stocks valued using Level 1 inputs by industry type.

(b) Income taxes — It is the Fund’s policy to comply with the special provisions of Subchapter M of the Internal Revenue Code applicable to regulated investment companies.  As provided therein, in any fiscal year in which the Fund so qualifies and distributes at least 90% of its taxable income, the Fund (but not the shareholders) will be relieved of federal income tax on the income distributed.  Accordingly, no provision for income taxes has been made.

In order to avoid imposition of the excise tax applicable to regulated investment companies, it is also the Fund’s intention to declare as dividends in each calendar year at least 98% of its net investment income and 98% of its net realized capital gains plus undistributed amounts from prior years.

The following information is computed on a tax basis for each item as of December 31, 2009:

Federal income tax cost	$	26,994,913
Gross unrealized appreciation	$	7,604,443
Gross unrealized depreciation		(268,719	)
Net unrealized appreciation	$	7,335,724
Capital loss carryforward		(12,132,892	)
Accumulated deficit	$	(4,797,168	)

The difference between the federal income tax cost of portfolio investments and the financial statement cost for the Fund is due to certain timing differences in the recognition of capital losses under income tax regulations and GAAP.  These “book/tax” differences are temporary in nature and are primarily due to the tax deferral of losses on wash sales.

15

SCHWARTZ VALUE FUND

NOTES TO FINANCIAL STATEMENTS (Continued)

As of December 31, 2009, the Fund had capital loss carryforwards for federal income tax purposes of $12,132,892, of which $9,460,235 expires on December 31, 2016 and $2,672,657 expires on December 31, 2017.  These capital loss carryforwards may be utilized in future years to offset net realized capital gains, if any, prior to distributing such gains to shareholders.

The Fund recognizes the tax benefits or expenses of uncertain tax positions only when the position is “more-likely-than-not” to be sustained assuming examination by tax authorities. Management has reviewed the tax positions taken on Federal income tax returns for all open tax years (tax years ended December 31, 2006 through December 31, 2009) and has concluded that no provision for unrecognized tax benefits or expenses is required in these financial statements.

For the year ended December 31, 2009, the Fund reclassified $20,978 of net investment loss against paid-in capital on the Statement of Assets and Liabilities.  Such reclassification, the result of permanent differences between the financial statement and income tax reporting requirements, has no effect on the Fund’s net assets or net asset value per share.

(c) Security transactions and investment income — Security transactions are accounted for on the trade date.  Dividend income is recorded on the ex-dividend date.  Interest income is recognized on the accrual basis.  Realized gains and losses on security transactions are determined on the identified cost basis.

(d) Dividends and distributions — Dividends from net investment income and net capital gains, if any, are declared and paid annually in December.  Dividends and distributions to shareholders are recorded on the ex-dividend date.  The tax character of distributions paid during the years ended December 31, 2009 and December 31, 2008 was as follows:

Year Ended	Ordinary Income		Long-Term Capital Gains		Total Distributions
December 31, 2009	$	—	$	—	$	—
December 31, 2008	$	131,608	$	37	$	131,645

(e) Repurchase agreements — The Fund may enter into repurchase agreements (agreements to purchase securities subject to the seller’s agreement to repurchase them at a specified time and price) with well-established registered securities dealers or banks. Repurchase agreements may be deemed to be loans by the Fund. The Fund’s policy is to take possession of U.S. Government obligations as collateral under a repurchase agreement and, on a daily basis, mark-to-market such obligations to ensure that their value, including accrued interest, is at least equal to the amount to be repaid to the Fund under the repurchase agreement. If the seller defaults, and the fair value of the collateral declines, realization of the collateral by the Fund may be delayed or limited. There were no outstanding repurchase agreements at December 31, 2009.

16

SCHWARTZ VALUE FUND

NOTES TO FINANCIAL STATEMENTS (Continued)

(f) Estimates — The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.

(g) Common expenses — Common expenses of the Trust are allocated among the Fund and the other series of the Trust based on relative net assets of each series or the nature of the services performed and the relative applicability to each series.

2.   Investment Advisory Agreement and Transactions with Related Parties

The President of the Trust is also the President and Chief Investment Officer of Schwartz Investment Counsel, Inc. (the “Adviser”). Certain other officers of the Trust are officers of the Adviser, or of Ultimus Fund Solutions, LLC (“Ultimus”), the administrative, accounting and transfer agent for the Fund, or of Ultimus Fund Distributors, LLC (the “Distributor”), the Fund’s principal underwriter.

Pursuant to an Investment Advisory Agreement between the Trust and the Adviser, the Adviser is responsible for the management of the Fund and provides investment advice along with the necessary personnel, facilities, equipment and certain other services necessary to the operations of the Fund.  The Adviser receives from the Fund a quarterly fee at the annual rate of 1.00% of its average daily net assets.

The Chief Compliance Officer of the Fund (the “CCO”) is an employee of the Adviser.  The Trust pays the Adviser $25,000 annually for providing CCO services, of which the Fund pays its proportionate share along with the other series of the Trust. In addition, the Trust reimburses the Adviser for any out-of-pocket expenses incurred, if any, for providing these services.

Pursuant to a Mutual Fund Services Agreement between the Fund and Ultimus, Ultimus supplies regulatory and compliance services, calculates the daily net asset value per share, maintains the financial books and records of the Fund, maintains the records of each shareholder’s account, and processes purchases and redemptions of the Fund’s shares. For the performance of these services, the Fund pays Ultimus a fee, payable monthly, at an annual rate of 0.15% of its average daily net assets, subject to a minimum monthly fee of $4,000.

Pursuant to a Distribution Agreement between the Fund and the Distributor, the Distributor serves as the Fund’s exclusive agent for the distribution of its shares.  The Distributor is an affiliate of Ultimus.

3.   Investment Transactions

During the year ended December 31, 2009, cost of purchases and proceeds from sales and maturities of investment securities, excluding short-term investments and U.S. government securities, amounted to $19,241,313 and $24,631,416, respectively.

17

SCHWARTZ VALUE FUND

NOTES TO FINANCIAL STATEMENTS (Continued)

4.   Contingencies and Commitments

The Fund indemnifies the Trust’s officers and Trustees for certain liabilities that might arise from their performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts that contain a variety of representations and warranties and which provide general indemnifications. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. However, based on experience, the Fund expects the risk of loss to be remote.

5.   Subsequent Events

GAAP requires the Fund to recognize in the financial statements the effects of all subsequent events that provide additional evidence about conditions that existed as of the date of the Statement of Assets and Liabilities.  For non-recognized subsequent events that must be disclosed to keep the financial statements from being misleading, the Fund is required to disclose the nature of the event as well as an estimate of its financial effect, or a statement that such an estimate cannot be made.  In addition, GAAP requires the Fund to disclose the date through which subsequent events have been evaluated.  Management has evaluated subsequent events through the issuance of these financial statements on February 17, 2010 and has noted no such events except as reflected in the following paragraph.

Effective May 1, 2010, the advisory fee that will be paid under the Investment Advisory Agreement between the Fund and the Adviser will be reduced from 1.00% to 0.95% per annum of the Fund’s average daily net assets.

18

SCHWARTZ VALUE FUND

REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM

To the Shareholders and Board of Trustees of

Schwartz Value Fund:

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Schwartz Value Fund (the “Fund”) as of December 31, 2009, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2009, by correspondence with the custodian and brokers. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Schwartz Value Fund as of December 31, 2009, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

DELOITTE & TOUCHE LLP

Chicago, Illinois

February 17, 2010

19

SCHWARTZ VALUE FUND

BOARD OF TRUSTEES AND EXECUTIVE OFFICERS
(Unaudited)

Overall responsibility for management of the Trust rests with the Board of Trustees.  The Trustees serve during the lifetime of the Trust and until its termination, or until death, resignation, retirement or removal.  The Trustees, in turn, elect the officers of the Trust to actively supervise its day-to-day operations.  The officers have been elected for an annual term.  The following are the Trustees and executive officers of the Trust:

Trustee/Officer	Address	Age	Position Held with the Trust	Length of Time Served
Interested Trustees:
*   George P. Schwartz, CFA	3707 W. Maple Road, Bloomfield Hills, MI	65	Chairman of the Board/President/ Trustee	Since 1992
Independent Trustees:
John E. Barnds	3707 W. Maple Road, Bloomfield Hills, MI	77	Trustee	Since 2005
Louis C. Bosco, Jr.	3707 W. Maple Road, Bloomfield Hills, MI	73	Trustee	Since 2008
Donald J. Dawson, Jr.	3707 W. Maple Road, Bloomfield Hills, MI	62	Trustee	Since 1993
Joseph M. Grace	3707 W. Maple Road, Bloomfield Hills, MI	73	Trustee	Since 2007
Executive Officers:
*   Richard L. Platte, Jr., CFA	3707 W. Maple Road, Bloomfield Hills, MI	58	Vice President and Secretary	Since 1993
*   Timothy S. Schwartz, CFA	3707 W. Maple Road, Bloomfield Hills, MI	38	Treasurer	Since 2000
*   Cathy M. Stoner, CPA	3707 W. Maple Road, Bloomfield Hills, MI	39	Chief Compliance Officer	Since 2010

* George P. Schwartz, Richard L. Platte, Jr., Timothy S. Schwartz and Cathy M. Stoner, as affiliated persons of Schwartz Investment Counsel, Inc., the Fund’s investment adviser, are “interested persons” of the Trust within the meaning of Section 2(a)(19) of the Investment Company Act of 1940. George P. Schwartz is the father of Timothy S. Schwartz.

Each Trustee oversees six portfolios of the Trust: the Ave Maria Catholic Values Fund, the Ave Maria Growth Fund, the Ave Maria Rising Dividend Fund, the Ave Maria Opportunity Fund, the Ave Maria Bond Fund and the Schwartz Value Fund.  The principal occupations of the Trustees and executive officers of the Trust during the past five years and public directorships held by the Trustees are set forth on the following page:

20

SCHWARTZ VALUE FUND

BOARD OF TRUSTEES AND EXECUTIVE OFFICERS  

(Unaudited) (Continued)

George P. Schwartz, CFA is President and Chief Investment Officer of Schwartz Investment Counsel, Inc. and is the co-portfolio manager of the Fund.

John E. Barnds is retired First Vice President of National Bank of Detroit (JPMorgan Chase).

Louis C. Bosco, Jr. is a partner in Bosco Development Company (a real estate firm).

Donald J. Dawson, Jr. is Chairman of Payroll 1, Inc. (a payroll processing company).

Joseph M. Grace is retired Senior Vice President of National Bank of Detroit (JPMorgan Chase).

Richard L. Platte, Jr., CFA is Executive Vice President and Secretary of Schwartz Investment Counsel, Inc.

Timothy S. Schwartz, CFA is Vice President and Treasurer of Schwartz Investment Counsel, Inc. and is the co-portfolio manager of the Fund.

Cathy M. Stoner, CPA is Chief Compliance Officer and Operations Manager of Schwartz Investment Counsel, Inc. Prior to July 2009, she was an Audit Manager with Deloitte & Touche LLP.

Additional information about members of the Board of Trustees and executive officers is available in the Statement of Additional Information (“SAI”). To obtain a free copy of the SAI, please call (888) 726-0753.

21

SCHWARTZ VALUE FUND

ABOUT YOUR FUND’S EXPENSES (Unaudited)

We believe it is important for you to understand the impact of costs on your investment.  As a shareholder of the Fund, you incur ongoing costs, including management fees and other Fund expenses. The following examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

A mutual fund’s ongoing costs are expressed as a percentage of its average net assets.  This figure is known as the expense ratio.  The ongoing costs reflected in the table below are based on an investment of $1,000 made at the beginning of the most recent semi-annual period (July 1, 2009) and held until the end of the period (December 31, 2009).

The table below illustrates the Fund’s costs in two ways:

Actual fund return – This section helps you to estimate the actual expenses that you paid over the period.  The “Ending Account Value” shown is derived from the Fund’s actual return, and the third column shows the dollar amount of operating expenses that would have been paid by an investor who started with $1,000 in the Fund.  You may use the information here, together with the amount you invested, to estimate the expenses that you paid over the period.

To do so, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number given for the Fund under the heading “Expenses Paid During Period.”

Hypothetical 5% return – This section is intended to help you compare the Fund’s ongoing costs with those of other mutual funds.  It assumes that the Fund had an annual return of 5% before expenses during the period shown, but that the expense ratio is unchanged.  In this case, because the return used is not the Fund’s actual return, the result does not apply to your investment.  The example is useful in making comparisons because the Securities and Exchange Commission (“SEC”) requires all mutual funds to calculate expenses based on a 5% return.  You can assess the Fund’s ongoing costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds.

Note that expenses shown in the table are meant to highlight and help you compare ongoing costs only.  The Fund does not charge sales loads or redemption fees.

The calculations assume no shares were bought or sold during the period.  Your actual costs may have been higher or lower, depending on the amount of your investment and the timing of any purchases or redemptions.

More information about the Fund’s expenses, including historical annual expense ratios, can be found in this report. For additional information on operating expenses and other shareholder costs, please refer to the Fund’s Prospectus.

	Beginning Account Value July 1, 2009		Ending Account Value December 31, 2009		Expenses Paid During Period*
Based on Actual Fund Return	$	1,000.00	$	1,235.60	$	8.11
Based on Hypothetical 5% Return (before expenses)	$	1,000.00	$	1,017.95	$	7.32

* Expenses are equal to the Fund’s annualized expense ratio of 1.44% for the period, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

22

SCHWARTZ VALUE FUND

OTHER INFORMATION (Unaudited)

A description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge upon request by calling toll-free (888) 726-0753, or on the SEC’s website at http://www.sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is also available without charge upon request by calling toll-free (888) 726-0753, or on the SEC’s website at http://www.sec.gov.

The Trust files a complete listing of portfolio holdings for the Fund with the SEC as of the first and third quarters of each fiscal year on Form N-Q. The filings are available free of charge, upon request, by calling (888) 726-0753. Furthermore, you may obtain a copy of the filings on the SEC’s website at http://www.sec.gov. The Trust’s Forms N-Q may also be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330.

SCHWARTZ VALUE FUND

INVESTMENT PHILOSOPHY

Schwartz Value Fund (the “Fund”) seeks long-term capital appreciation through value investing – purchasing shares of strong, growing companies at reasonable prices. The Fund invests in companies of all sizes from large-caps to micro-caps. Because the Adviser believes small companies can offer vast reward opportunities, fundamental analysis is used to identify emerging companies with outstanding business characteristics. Sometimes the best values are issues not followed closely by Wall Street analysts.

Most value investors buy fair companies at an excellent price. The Fund attempts to buy excellent companies at a fair price. The essence of value investing is finding companies with great business characteristics, which by their nature offer a margin of safety. A truly fine business requires few assets to provide a consistently expanding stream of income. The Fund purchases shares which are temporarily out-of-favor and selling below intrinsic value.

A common thread in the Fund’s investments is that the market price is often below what a corporate or entrepreneurial buyer might be willing to pay for the entire business. The auction nature and the inefficiencies of the stock market are such that the Fund can sometimes buy a minority interest in a fine company at a small fraction of the price per share necessary to acquire the entire company.

23

THIS PAGE INTENTIONALLY LEFT BLANK.

THIS PAGE INTENTIONALLY LEFT BLANK.

Shareholder Accounts c/o Ultimus Fund Solutions, LLC P.O. Box 46707 Cincinnati, OH 45246 (888) 726-9331   Corporate Offices 3707 W. Maple Road Suite 100 Bloomfield Hills, MI 48301

Dear Shareowner of:

Ave Maria Catholic Values Fund (AVEMX)

Ave Maria Growth Fund (AVEGX)

Ave Maria Rising Dividend Fund (AVEDX)

Ave Maria Opportunity Fund (AVESX)

Ave Maria Bond Fund (AVEFX)

Ave Maria Money Market Account

2009 was a good year by almost any measure for investors.  The year began with a new administration in Washington, preaching “hope and change,” while signs of stress to the financial system were unfolding.  Investors were scared and were dumping stocks in a panic.  Last year at this time, I wrote to you the following:

“In my 40 years of investment counsel, I have never seen pessimism and fear as widespread.  Panic-struck investors have sold stocks relentlessly at any price, just to get out.  This has resulted in $4 trillion of investors’ cash sitting in money market funds, and has created the potential for an explosive rally.”

An explosive rally is exactly what happened.  Starting on March 9, 2009, stocks just took off.  Valuations had become so compressed and cash levels so high (a record 40% of the market capitalization of all U.S. stocks), that selling pressure became exhausted.  In our view remarkable bargains were almost everywhere.  As portfolio managers, we took advantage of those bargains.  We committed cash reserves, confident that the risks at that point were minimal.  That bullishness paid off in investment performance for the Ave Maria Mutual Funds, detailed elsewhere in this report.

Generally, stock prices elevated 50–60% off their March, 2009 lows.  Even though corporate profits have not recovered as we would have hoped during 2009, the prospects for significant improvement this year are encouraging.

Many shareowners have called and written to express their concern about the Administration’s apparent movement toward a European-style Socialist Democracy.  We are watching with great caution political developments in the nation’s capital and around the country.  Never in my memory has politics had such implications for the capital markets.  It seems that the U.S. is at a crossroad regarding so many important issues.  The long-term consequences of proposed

national policies could materially impact corporate profits, economic growth, entrepreneurship, taxation and capital formation.  But I’m optimistic that the American people will not allow our great country to devolve into the chaos the pessimists foresee.  Assuming the worst of the anti-growth proposals don’t get implemented, there are reasons for optimism from a macro prospective.  On that basis, we are cautiously optimistic about 2010 and beyond.

Each of the Ave Maria Mutual Funds continues to meet the moral mandates established by our Catholic Advisory Board.

Sincerely,

George P. Schwartz, CFA

Chairman & President

January 21, 2010

The Letter to Shareholders and the Portfolio Manager Commentaries that follow seek to describe some of the Adviser’s current opinions and views of the financial markets. Although the Adviser believes it has a reasonable basis for any opinions or views expressed, actual results may differ, sometimes significantly so, from those expected or expressed.  Keep in mind that the information and opinions cover the period through the date of this report.

AVE MARIA MUTUAL FUNDS

TABLE OF CONTENTS

Ave Maria Catholic Values Fund:
Portfolio Manager Commentary	1
Performance	3
Annual Total Rates of Return Comparison with Major Indices	4
Ten Largest Equity Holdings	5
Asset Allocation	5
Schedule of Investments	6
Ave Maria Growth Fund:
Portfolio Manager Commentary	10
Performance	12
Annual Total Rates of Return Comparison with Major Indices	13
Ten Largest Equity Holdings	14
Asset Allocation	14
Schedule of Investments	15
Ave Maria Rising Dividend Fund:
Portfolio Manager Commentary	18
Performance	19
Annual Total Rates of Return Comparison with Major Indices	20
Ten Largest Equity Holdings	21
Asset Allocation	21
Schedule of Investments	22
Ave Maria Opportunity Fund:
Portfolio Manager Commentary	25
Performance	27
Ten Largest Equity Holdings	28
Asset Allocation	28
Schedule of Investments	29
Ave Maria Bond Fund:
Portfolio Manager Commentary	32
Performance	34
Annual Total Rates of Return Comparison with Major Indices	35
Ten Largest Holdings	36
Asset Allocation	36
Schedule of Investments	37
Statements of Assets and Liabilities	41
Statements of Operations	42

AVE MARIA MUTUAL FUNDS

TABLE OF CONTENTS (Continued)

Statements of Changes in Net Assets:
Ave Maria Catholic Values Fund	43
Ave Maria Growth Fund	44
Ave Maria Rising Dividend Fund	45
Ave Maria Opportunity Fund	46
Ave Maria Bond Fund	47
Financial Highlights:
Ave Maria Catholic Values Fund	48
Ave Maria Growth Fund	49
Ave Maria Rising Dividend Fund	50
Ave Maria Opportunity Fund	51
Ave Maria Bond Fund - Class I	52
Ave Maria Bond Fund - Class R	53
Notes to Financial Statements	54
Report of Independent Registered Public Accounting Firm	63
Board of Trustees and Executive Officers	64
Catholic Advisory Board	66
Federal Tax Information	67
Other Information	67
About Your Funds’ Expenses	68

This report is for the information of shareholders of the Ave Maria Mutual Funds, but it may also be used as sales literature when preceded or accompanied by a current prospectus, which gives details about charges, expenses, investment objectives and operating policies of the Funds. To obtain a copy of the prospectus, please visit our website at www.avemariafunds.com or call 1-888-726-9331 and a copy will be sent to you free of charge. Please read the prospectus carefully before you invest. The Ave Maria Mutual Funds are distributed by Ultimus Fund Distributors, LLC.

Past performance is not predictive of future performance. Investment results and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data quoted.  Performance data, current to the most recent month end, is available at the Ave Maria Funds website at www.avemariafunds.com or by calling 1-888-726-9331.

AVE MARIA CATHOLIC VALUES FUND

PORTFOLIO MANAGER COMMENTARY

Dear Fellow Shareowner:

The Ave Maria Catholic Values Fund’s (the “Fund”) total return for the year ended December 31, 2009 was 37.6% as compared to 26.5% for the S&P 500 Index and 37.4% for the S&P 400 MidCap Index.  Since the Fund’s inception on May 1, 2001, returns have been as follows:

	Since 5-01-01 Inception through 12-31-09 Total Returns
	Cumulative	Annualized
Ave Maria Catholic Values Fund (AVEMX)	55.8%	5.3%
S&P 500 Index	3.9%	0.4%
S&P 400 MidCap Index	57.9%	5.4%

What a wild roller coaster ride the market gave investors in 2009!  Just when all appeared lost (at least to many media pundits) in March, the market turned on a dime, reversing a 26% year-to-date decline, to finish the year up 26.5% (as measured by the S&P 500 Index).  March 2009 may turn out to be one of the great buying opportunities of a lifetime.

Stocks that made significant positive contributions to the Fund’s performance in 2009 included: BE Aerospace, Inc. (Aircraft Parts), Teradata Corporation (Data Systems), Gentex Corporation (Auto Parts), ION Geophysical Corporation, Halliburton Co. (Oil Service), Kinetic Concepts, Inc (Medical Devices), and Chico’s FAS, Inc. (Women’s Retail).  Many of these stocks appreciated over 100% from their lows witnessed during the year.  Negative contributors were Belden, Inc. and Trinity Industries, Inc. (Industrial Manufacturing), Synovus Financial Corporation and BB&T Corporation (Banking), Alcoa, Inc. (Metals), and Exxon Mobil Corporation (Energy).

The Fund experienced higher than usual turnover over the last six months of the year.  As the stock market advanced, we weeded out overvalued stocks and upgraded the quality of companies in the portfolio.  Fourteen companies were eliminated.  Some stocks such as Illinois Tool Works, Inc., Johnson Controls, Inc., Harley-Davidson, Inc., Bed Bath & Beyond, Inc. and Chico’s FAS, Inc. were sold because valuations had run up, reflecting expectations of very strong earnings recoveries, which may or may not materialize.  Other issues sold, such as Hatteras Financial Corporation, Annaly Capital Management, Inc., and Thor Industries, Inc., have business models that are vulnerable to rising interest rates, which we expect as inflationary pressures build.

Proceeds from these sales were invested in nine stocks, which we consider undervalued.  Each has a solid balance sheet and generates plenty of cash to finance

1

AVE MARIA CATHOLIC VALUES FUND

PORTFOLIO MANAGER COMMENTARY (Continued)

growth, even in a slow-growth economy.  Most have a history of returning excess cash to shareholders via dividends and share repurchases.  IBM, Inc. and Accenture PLC (I.T. Consulting), Belden, Inc., and Abbott Laboratories (Health Care) also provide exposure to faster-growing developing countries. Other purchases include Range Resources Corporation and Tidewater, Inc (Energy), Federated Investors, Inc. (Investment Management), Sysco Corporation (Food Distribution) and Kennedy-Wilson Holdings, Inc. (Commercial Real Estate). All of these companies comply with the moral screens established by the Fund’s Catholic Advisory Board.

The government’s massive fiscal and monetary stimulus programs are working, even if not as effectively as one would hope.  In our view, the economic recovery began in the third quarter of 2009 and appears to be gradually gaining momentum.  This year we expect double-digit corporate profit growth and lower unemployment, which should provide a favorable backdrop for equities. By upgrading the quality of the portfolio over the last year, we believe the Fund is positioned to perform well, even if the economic recovery is less robust than consensus expectations.

Thank you for being a shareholder.

Sincerely,

George P. Schwartz, CFA	Gregory R. Heilman, CFA
Co-Portfolio Manager	Co-Portfolio Manager

2

AVE MARIA CATHOLIC VALUES FUND

PERFORMANCE (Unaudited)

Comparison of the Change in Value of a $10,000 Investment

in the Ave Maria Catholic Values Fund, the S&P 500 Index,

and the S&P 400 MidCap Index

(a)	The returns shown do not reflect the deduction of taxes a shareholder would pay on Fund distributions or the redemption of Fund shares.
(b)	Represents the period from the commencement of operations (May 1, 2001) through December 31, 2009.

Expense Ratio information as of:	12-31-08 (as disclosed in May 1, 2009 prospectus)	12-31-09
Gross	1.55%	1.56%
Net	1.51%	1.50%

3

AVE MARIA CATHOLIC VALUES FUND

ANNUAL TOTAL RATES OF RETURN

COMPARISON WITH MAJOR INDICES (Unaudited)

	AVE MARIA CATHOLIC VALUES FUND			S&P 500 INDEX			S&P 400 MIDCAP INDEX			S&P 600 SMALL CAP INDEX			NASDAQ COMPOSITE (b)			VALUE LINE COMPOSITE(b)
2001 (a)		5.3	%		-8.5	%		-0.5	%		5.0	%		-10.1	%		-7.3	%
2002		-9.8	%		-22.1	%		-14.5	%		-14.6	%		-31.5	%		-28.6	%
2003		35.6	%		28.7	%		35.6	%		38.8	%		50.0	%		37.4	%
2004		20.1	%		10.9	%		16.5	%		22.7	%		8.6	%		11.5	%
2005		5.8	%		4.9	%		12.6	%		7.7	%		1.4	%		2.0	%
2006		14.2	%		15.8	%		10.3	%		15.1	%		9.5	%		11.0	%
2007		-4.0	%		5.5	%		8.0	%		-0.3	%		9.8	%		-3.8	%
2008		-36.8	%		-37.0	%		-36.2	%		-31.1	%		-40.5	%		-48.7	%
2009		37.6	%		26.5	%		37.4	%		25.6	%		43.9	%		36.8	%

AVERAGE ANNUAL TOTAL RETURNS

As of December 31, 2009 (Unaudited)

	AVE MARIA CATHOLIC VALUES FUND			S&P 500 INDEX			S&P 400 MIDCAP INDEX			S&P 600 SMALL CAP INDEX			NASDAQ COMPOSITE (b)			VALUE LINE COMPOSITE (b)
3 Years		-5.9	%		-5.6	%		-1.8	%		-4.8	%		-2.1	%		-12.3	%
5 Years		0.2	%		0.4	%		3.3	%		1.4	%		0.9	%		-5.2	%
Since Inception		5.3	%		0.4	%		5.4	%		5.8	%		0.5	%		-2.9	%

(a)	Represents the period from the commencement of operations (May 1, 2001) through December 31, 2001.
(b)	Excluding dividends.

4

AVE MARIA CATHOLIC VALUES FUND

TEN LARGEST EQUITY HOLDINGS

December 31, 2009 (Unaudited)

Shares		Company	Market Value		% of Net Assets
	185,000	Federated Investors, Inc. - Class B	$	5,087,500		3.0	%
	100,000	Stryker Corporation		5,037,000		3.0	%
	625,000	Meadowbrook Insurance Group, Inc.		4,625,000		2.7	%
	75,000	Sherwin-Williams Company (The)		4,623,750		2.7	%
	150,000	Halliburton Company		4,513,500		2.6	%
	60,000	United Technologies Corporation		4,164,600		2.4	%
	100,000	Accenture PLC - Class A		4,150,000		2.4	%
	135,000	Patterson Companies, Inc.		3,777,300		2.2	%
	200,000	Western Union Company (The)		3,770,000		2.2	%
	150,000	Cisco Systems, Inc.		3,591,000		2.1	%

ASSET ALLOCATION (Unaudited)

Sector	% of Net Assets
Consumer Discretionary		10.6	%
Consumer Staples		1.8	%
Energy		13.3	%
Financials		15.4	%
Health Care		12.7	%
Industrials		14.9	%
Information Technology		12.4	%
Materials		3.3	%
Exchange-Traded Funds		1.3	%
Cash Equivalents, Other Assets and Liabilities		14.3	%
		100.0	%

5

AVE MARIA CATHOLIC VALUES FUND

SCHEDULE OF INVESTMENTS

December 31, 2009

COMMON STOCKS — 84.4%	Shares		Market Value
Consumer Discretionary — 10.6%
Auto Components — 1.0%
Gentex Corporation		100,000	$	1,785,000
Distributors — 1.9%
Genuine Parts Company		85,000		3,226,600
Household Durables — 0.2%
Craftmade International, Inc. *		179,700		332,445
Specialty Retail — 4.8%
Lowe’s Companies, Inc.		150,000		3,508,500
Sherwin-Williams Company (The)		75,000		4,623,750
				8,132,250
Textiles, Apparel & Luxury Goods — 2.7%
Coach, Inc.		75,000		2,739,750
VF Corporation		25,000		1,831,000
				4,570,750
Consumer Staples — 1.8%
Food & Staples Retailing — 0.8%
Sysco Corporation		50,000		1,397,000
Personal Products — 1.0%
Avon Products, Inc.		50,000		1,575,000
Energy — 13.3%
Energy Equipment & Services — 6.3%
Halliburton Company		150,000		4,513,500
ION Geophysical Corporation *		300,000		1,776,000
Schlumberger Ltd.		50,000		3,254,500
Tidewater, Inc.		25,000		1,198,750
				10,742,750
Oil, Gas & Consumable Fuels — 7.0%
Exxon Mobil Corporation		40,000		2,727,600
Forest Oil Corporation *		75,000		1,668,750
Peabody Energy Corporation		50,000		2,260,500
Range Resources Corporation		30,000		1,495,500
Southwestern Energy Company *		50,000		2,410,000
Suncor Energy, Inc.		40,000		1,412,400
				11,974,750
Financials — 15.4%
Capital Markets — 3.0%
Federated Investors, Inc. - Class B		185,000		5,087,500
Commercial Banks — 1.3%
Comerica, Inc.		75,000		2,217,750

6

AVE MARIA CATHOLIC VALUES FUND

SCHEDULE OF INVESTMENTS (Continued)

COMMON STOCKS — 84.4% (Continued)	Shares		Market Value
Financials — 15.4% (Continued)
Insurance — 9.3%
Alleghany Corporation *		12,000	$	3,312,000
Hanover Insurance Group, Inc. (The)		75,000		3,332,250
Markel Corporation *		5,000		1,700,000
Meadowbrook Insurance Group, Inc.		625,000		4,625,000
Unico American Corporation		282,945		2,919,993
				15,889,243
Real Estate Investment Trusts — 0.9%
HCP, Inc.		50,000		1,527,000
Real Estate Management & Development — 0.9%
Kennedy-Wilson Holdings, Inc. *		175,000		1,566,250
Health Care — 12.7%
Health Care Equipment & Supplies — 6.2%
Kinetic Concepts, Inc. *		75,000		2,823,750
Stryker Corporation		100,000		5,037,000
Varian Medical Systems, Inc. *		60,000		2,811,000
				10,671,750
Health Care Providers & Services — 2.2%
Patterson Companies, Inc. *		135,000		3,777,300
Life Sciences Tools & Services — 2.7%
Mettler-Toledo International, Inc. *		20,000		2,099,800
Waters Corporation *		40,000		2,478,400
				4,578,200
Pharmaceuticals — 1.6%
Abbott Laboratories		50,000		2,699,500
Industrials — 14.9%
Aerospace & Defense — 5.4%
BE Aerospace, Inc. *		100,000		2,350,000
General Dynamics Corporation		40,000		2,726,800
United Technologies Corporation		60,000		4,164,600
				9,241,400
Building Products — 0.8%
Simpson Manufacturing Company, Inc.		50,000		1,344,500
Construction & Engineering — 0.7%
Foster Wheeler AG *		40,000		1,177,600
Electrical Equipment — 2.2%
Belden, Inc.		40,000		876,800
General Cable Corporation *		100,000		2,942,000
				3,818,800

7

AVE MARIA CATHOLIC VALUES FUND

SCHEDULE OF INVESTMENTS (Continued)

COMMON STOCKS — 84.4% (Continued)	Shares		Market Value
Industrials — 14.9% (Continued)
Machinery — 4.6%
Caterpillar, Inc.		50,000	$	2,849,500
Graco, Inc.		100,000		2,857,000
Lincoln Electric Holdings, Inc.		40,000		2,138,400
				7,844,900
Road & Rail — 1.2%
Burlington Northern Santa Fe Corporation		20,000		1,972,400
Information Technology — 12.4%
Communications Equipment — 3.1%
ADTRAN, Inc.		75,000		1,691,250
Cisco Systems, Inc. *		150,000		3,591,000
				5,282,250
Computers & Peripherals — 2.8%
International Business Machines Corporation		12,500		1,636,250
Teradata Corporation *		100,000		3,143,000
				4,779,250
Electronic Equipment, Instruments & Components — 0.6%
Arrow Electronics, Inc. *		35,000		1,036,350
IT Services — 4.6%
Accenture PLC - Class A		100,000		4,150,000
Western Union Company (The)		200,000		3,770,000
				7,920,000
Office Electronics — 1.3%
Zebra Technologies Corporation - Class A *		75,000		2,127,000
Materials — 3.3%
Chemicals — 3.3%
Balchem Corporation		70,000		2,345,700
FMC Corporation		60,000		3,345,600
				5,691,300
Total Common Stocks (Cost $119,058,013)			$	143,986,788

EXCHANGE-TRADED FUNDS — 1.3%	Shares		Market Value
SPDR Gold Trust * (Cost $1,901,817)		20,000	$	2,146,200

REPURCHASE AGREEMENTS (a) — 0.9%	Face Amount		Market Value
U.S Bank N.A., 0.010%, dated 12/31/09, due 01/04/10, repurchase proceeds: $1,604,042 (Cost $1,604,040)	$	1,604,040	$	1,604,040

8

AVE MARIA CATHOLIC VALUES FUND

SCHEDULE OF INVESTMENTS (Continued)

MONEY MARKET FUNDS — 13.9%	Shares		Market Value
Federated Government Obligations Tax-Managed Fund - Institutional Shares, 0.030% (b)		7,933,176	$	7,933,176
Federated Treasury Obligations Fund - Institutional Shares, 0.010% (b)		7,933,176		7,933,176
Federated U.S. Treasury Cash Reserve Fund - Institutional Shares, 0.000% (b)		7,933,176		7,933,176
Total Money Market Funds (Cost $23,799,528)			$	23,799,528
Total Investments at Market Value — 100.5% (Cost $146,363,398)			$	171,536,556
Liabilities in Excess of Other Assets — (0.5%)				(902,286	)
Net Assets — 100.0%			$	170,634,270

*	Non-income producing security.
(a)	Repurchase agreement is fully collateralized by $1,604,040 FNCI Pool 729590, 4.50%, due 07/01/18.  The aggregate market value of the collateral at December 31, 2009 was $1,636,173.
(b)	The rate shown is the 7-day effective yield as of December 31, 2009.

See notes to financial statements.

9

AVE MARIA GROWTH FUND

PORTFOLIO MANAGER COMMENTARY

Dear Fellow Shareholders:

For the year ended December 31, 2009, the Ave Maria Growth Fund (the “Fund”) had a total return of 26.4% compared with 26.5% for the S&P 500 Index.  For the three years ended December 31, 2009, the Fund’s total return was –1.4% annualized compared with -5.6% annualized for the S&P 500 Index.

The top five performing issues in the Fund for 2009 were:
Coach, Inc. (Handbags and Outerwear)	+92.4	%
Amphenol Corporation (Cable & Interconnect Systems)	+86.4	%
Dionex Corporation (Laboratory Analytics)	+64.7	%
Polaris Industries, Inc. (Snowmobiles and All-terrain Vehicles)	+59.2	%
Mettler Toledo International, Inc. (Precision Instruments)	+55.8	%
The bottom five performing issues were:
Brown & Brown, Inc. (Insurance Broker)	-12.7	%
Exxon Mobil Corporation (Integrated Oil & Gas)	-12.6	%
Gilead Sciences, Inc. (Biotechnology)	-12.1	%
C. R. Bard, Inc. (Healthcare Equipment)	-5.8	%
CLARCOR, Inc. (Filtration & Packaging Products)	-1.1	%
The Fund is diversified among eight out of eleven economic sectors as follows:
Consumer Staples	8.3	%
Consumer Cyclicals	10.4	%
Financials	6.6	%
Utilities	0.0	%
Communications Services	0.0	%
Transportation	3.7	%
Energy	9.5	%
Basic Materials	0.0	%
Capital Goods	27.0	%
Technology	17.0	%
Health Care	17.5	%

10

AVE MARIA GROWTH FUND

PORTFOLIO MANAGER COMMENTARY (Continued)

As of December 31, 2009, the Ave Maria Growth Fund was 4-star rated by Morningstar*, placing the Fund’s overall 3-year and 5-year investment performance within the top 32.5% of Morningstar’s Mid-Cap Growth category. The number of Funds in the Mid-Cap Growth category was 727 for the 3-year period and Overal Ranking and 631 for the 5-year period.

Respectfully,

James L. Bashaw, CFA

Portfolio Manager

* Past performance is no guarantee of future returns. Morningstar Ratings™ are based on risk-adjusted returns.  The Overall Morningstar Rating™ is derived from a weighted average of the performance figures associated with a fund’s 3, 5, and 10-year (if applicable) Morningstar Rating™ metrics.  For funds with at least a 3-year history, a Morningstar Rating™ is based on a risk-adjusted return measure (including the effects of sales charges, loads, and redemption fees) with emphasis on downward variations and consistent performance.  The top 10% of funds in each category receive 5 stars, the next 22.5% 4 stars, the next 35% 3 stars, the next 22.5% 2 stars, and the bottom 10% one star.

11

AVE MARIA GROWTH FUND

PERFORMANCE (Unaudited)

Comparison of the Change in Value of a $10,000 Investment

in the Ave Maria Growth Fund and the S&P 500 Index

(a)	The returns shown do not reflect the deduction of taxes a shareholder would pay on Fund distributions or the redemption of Fund shares.
(b)	Represents the period from the commencement of operations (May 1, 2003) through December 31, 2009.

Expense Ratio information as of:	12-31-08 (as disclosed in May 1, 2009 prospectus)	12-31-09
Gross	1.60%	1.61%
Net	1.50%	1.50%

12

AVE MARIA GROWTH FUND

ANNUAL TOTAL RATES OF RETURN

COMPARISON WITH MAJOR INDICES (Unaudited)

	AVE MARIA GROWTH FUND			S&P 500 INDEX
2003 (a)		23.4	%		22.8	%
2004		21.5	%		10.9	%
2005		0.3	%		4.9	%
2006		15.8	%		15.8	%
2007		11.6	%		5.5	%
2008		-32.1	%		-37.0	%
2009		26.4	%		26.5	%

AVERAGE ANNUAL TOTAL RETURNS

As of December 31, 2009 (Unaudited)

	AVE MARIA GROWTH FUND			S&P 500 INDEX
3 Years		-1.4	%		-5.6	%
5 Years		2.2	%		0.4	%
Since Inception		8.0	%		5.1	%

(a) Represents the period from the commencement of operations (May 1, 2003) through December 31, 2003.

13

AVE MARIA GROWTH FUND

TEN LARGEST EQUITY HOLDINGS

December 31, 2009 (Unaudited)

Shares		Company	Market Value		% of Net Assets
	59,900	Dionex Corporation	$	4,424,813		3.8	%
	94,400	Varian Medical Systems, Inc.		4,422,640		3.8	%
	53,800	Occidental Petroleum Corporation		4,376,630		3.8	%
	94,200	Amphenol Corporation - Class A		4,350,156		3.8	%
	118,300	Coach, Inc.		4,321,499		3.7	%
	81,100	Hewlett-Packard Company		4,177,461		3.6	%
	55,000	Danaher Corporation		4,136,000		3.6	%
	107,200	AMETEK, Inc.		4,099,328		3.5	%
	76,600	Kellogg Company		4,075,120		3.5	%
	57,700	General Dynamics Corporation		3,933,409		3.4	%

ASSET ALLOCATION (Unaudited)

Sector	% of Net Assets
Consumer Discretionary		11.7	%
Consumer Staples		8.3	%
Energy		9.6	%
Financials		6.5	%
Health Care		23.7	%
Industrials		27.9	%
Information Technology		12.1	%
Cash Equivalents, Other Assets and Liabilities		0.2	%
		100.0	%

14

AVE MARIA GROWTH FUND

SCHEDULE OF INVESTMENTS

December 31, 2009

COMMON STOCKS — 99.8%	Shares		Market Value
Consumer Discretionary — 11.7%
Automobiles — 1.0%
Harley-Davidson, Inc.		47,300	$	1,191,960
Leisure Equipment & Products — 3.0%
Polaris Industries, Inc.		78,500		3,424,955
Specialty Retail — 4.0%
Bed Bath & Beyond, Inc. *		43,000		1,661,090
Ross Stores, Inc.		69,300		2,959,803
				4,620,893
Textiles, Apparel & Luxury Goods — 3.7%
Coach, Inc.		118,300		4,321,499
Consumer Staples — 8.3%
Food Products — 6.6%
Kellogg Company		76,600		4,075,120
McCormick & Company, Inc.		98,300		3,551,579
				7,626,699
Household Products — 1.7%
Clorox Company (The)		32,000		1,952,000
Energy — 9.6%
Oil, Gas & Consumable Fuels — 9.6%
Exxon Mobil Corporation		41,400		2,823,066
Occidental Petroleum Corporation		53,800		4,376,630
XTO Energy, Inc.		83,125		3,867,806
				11,067,502
Financials — 6.5%
Capital Markets — 4.0%
Eaton Vance Corporation		59,000		1,794,190
SEI Investments Company		163,900		2,871,528
				4,665,718
Insurance — 2.5%
Brown & Brown, Inc.		160,200		2,878,794
Health Care — 23.7%
Biotechnology — 1.8%
Gilead Sciences, Inc. *		48,000		2,077,440
Health Care Equipment & Supplies — 10.7%
Beckman Coulter, Inc.		23,300		1,524,752
C.R. Bard, Inc.		43,800		3,412,020
Stryker Corporation		59,800		3,012,126
Varian Medical Systems, Inc. *		94,400		4,422,640
				12,371,538

15

AVE MARIA GROWTH FUND

SCHEDULE OF INVESTMENTS (Continued)

COMMON STOCKS — 99.8% (Continued)	Shares		Market Value
Health Care — 23.7% (Continued)
Health Care Providers & Services — 4.5%
Patterson Companies, Inc. *		55,500	$	1,552,890
VCA Antech, Inc. *		145,300		3,620,876
				5,173,766
Life Sciences Tools & Services — 6.7%
Dionex Corporation *		59,900		4,424,813
Mettler-Toledo International, Inc. *		31,900		3,349,181
				7,773,994
Industrials — 27.9%
Aerospace & Defense — 4.1%
General Dynamics Corporation		57,700		3,933,409
Precision Castparts Corporation		3,500		386,225
Rockwell Collins, Inc.		7,000		387,520
				4,707,154
Air Freight & Logistics — 1.5%
Expeditors International of Washington, Inc.		49,100		1,705,243
Commercial Services & Supplies — 3.4%
Rollins, Inc.		202,900		3,911,912
Electrical Equipment — 3.5%
AMETEK, Inc.		107,200		4,099,328
Machinery — 13.1%
CLARCOR, Inc.		56,800		1,842,592
Danaher Corporation		55,000		4,136,000
Donaldson Company, Inc.		61,400		2,611,956
Graco, Inc.		100,200		2,862,714
Toro Company (The)		88,900		3,716,909
				15,170,171
Road & Rail — 2.3%
Landstar System, Inc.		67,500		2,616,975
Information Technology — 12.1%
Communications Equipment — 1.4%
Cisco Systems, Inc. *		66,000		1,580,040
Computers & Peripherals — 3.6%
Hewlett-Packard Company		81,100		4,177,461
Electronic Equipment, Instruments & Components — 3.8%
Amphenol Corporation - Class A		94,200		4,350,156
IT Services — 3.3%
Accenture PLC - Class A		93,600		3,884,400
Total Common Stocks (Cost $105,911,339)			$	115,349,598

 

16

AVE MARIA GROWTH FUND

SCHEDULE OF INVESTMENTS (Continued)

MONEY MARKET FUNDS — 0.4%	Shares		Market Value
Federated Government Obligations Tax-Managed Fund - Institutional Shares, 0.030% (a) (Cost $517,269)		517,269	$	517,269
Total Investments at Market Value — 100.2% (Cost $106,428,608)			$	115,866,867
Liabilities in Excess of Other Assets — (0.2%)				(240,534	)
Net Assets — 100.0%			$	115,626,333

*	Non-income producing security.
(a)	The rate shown is the 7-day effective yield as of December 31, 2009.

See notes to financial statements.

17

AVE MARIA RISING DIVIDEND FUND

PORTFOLIO MANAGER COMMENTARY

Dear Fellow Shareholders:

The financial markets began 2009 badly, but improved dramatically as the year progressed.  The Ave Maria Rising Dividend Fund (the “Fund”) had a total return of 25.3% for the year ended December 31, 2009 versus 26.5% for the S&P 500 Index and 26.6% for the S&P 500 Dividend Aristocrats Index.

The Fund’s investment performance was helped by energy-related stocks (Halliburton Company, Peabody Energy Corporation and Schlumberger Ltd.), each up more than 50% for the year.  Strong contributions also came from Harley-Davidson, Inc., Avon Products, Inc., and 3M Company. Performance was negatively impacted by R.R. Donnelley & Sons Company, Caterpillar, Inc., Mercury General Corporation, and United Bankshares, Inc.

Standard & Poors described 2009 as the worst year for dividends since they started keeping records in 1955 with 804 companies cutting their dividends.  The Fund had only 5 portfolio companies reduce their dividend, while 28 continued to increase their dividends.  This is gratifying, but not surprising.  In managing the Fund, we select companies partly on the basis of what we consider to be their bullet-proof financial position and consistency of operating profitability.  We are confident that these exceptional companies will continue to prosper and produce above-average, long-term investment results.

With best regards,

George P. Schwartz, CFA	Richard L. Platte, Jr., CFA
Co-Portfolio Manager	Co-Portfolio Manager

18

AVE MARIA RISING DIVIDEND FUND

PERFORMANCE (Unaudited)

Comparison of the Change in Value of a $10,000 Investment

in the Ave Maria Rising Dividend Fund, the S&P 500 Index,

and the S&P 500 Dividend Aristocrats Index

(a)	The returns shown do not reflect the deduction of taxes a shareholder would pay on Fund distributions or the redemption of Fund shares.
(b)	Represents the period from the commencement of operations (May 2, 2005) through December 31, 2009.

Expense Ratio information as of:	12-31-08 (as disclosed in May 1, 2009 prospectus)	12-31-09
Gross	1.16%	1.11%

19

AVE MARIA RISING DIVIDEND FUND

ANNUAL TOTAL RATES OF RETURN

COMPARISON WITH MAJOR INDICES (Unaudited)

	AVE MARIA RISING DIVIDEND FUND			S&P 500 INDEX			S&P 500 DIVIDEND ARISTOCRATS INDEX
2005 (a)		6.7	%		8.8	%		1.3	%
2006		17.9	%		15.8	%		17.3	%
2007		-0.6	%		5.5	%		-2.1	%
2008		-22.8	%		-37.0	%		-21.9	%
2009		25.3	%		26.5	%		26.6	%

AVERAGE ANNUAL TOTAL RETURNS

As of December 31, 2009 (Unaudited)

	AVE MARIA RISING DIVIDEND FUND			S&P 500 INDEX			S&P 500 DIVIDEND ARISTOCRATS INDEX
3 Years		-1.3	%		-5.6	%		-1.1	%
Since Inception		4.2	%		1.2	%		3.9	%

(a) Represents the period from the commencement of operations (May 2, 2005) through December 31, 2005.

20

AVE MARIA RISING DIVIDEND FUND

TEN LARGEST EQUITY HOLDINGS

December 31, 2009 (Unaudited)

Shares		Company	Market Value		% of Net Assets
	80,000	Stryker Corporation	$	4,029,600		3.9	%
	125,000	Halliburton Company		3,761,250		3.6	%
	125,000	Federated Investors, Inc. - Class B		3,437,500		3.3	%
	55,000	Procter & Gamble Company (The)		3,334,650		3.2	%
	40,000	3M Company		3,306,800		3.2	%
	50,000	Schlumberger Ltd.		3,254,500		3.2	%
	60,000	Abbott Laboratories		3,239,400		3.2	%
	100,000	Avon Products, Inc.		3,150,000		3.1	%
	80,000	Hormel Foods Corporation		3,076,000		3.0	%
	110,000	Sysco Corporation		3,073,400		3.0	%

ASSET ALLOCATION (Unaudited)

Sector	% of Net Assets
Consumer Discretionary		15.3	%
Consumer Staples		15.8	%
Energy		11.1	%
Financials		11.0	%
Health Care		10.5	%
Industrials		15.3	%
Information Technology		6.2	%
Materials		2.0	%
Utilities		2.3	%
Cash Equivalents, Other Assets and Liabilities		10.5	%
		100.0	%

21

AVE MARIA RISING DIVIDEND FUND

SCHEDULE OF INVESTMENTS

December 31, 2009

COMMON STOCKS — 89.5%	Shares		Market Value
Consumer Discretionary — 15.3%
Automobiles — 0.7%
Harley-Davidson, Inc.		30,000	$	756,000
Media — 1.4%
John Wiley & Sons, Inc. - Class A		35,000		1,465,800
Multiline Retail — 2.7%
Family Dollar Stores, Inc.		100,000		2,783,000
Specialty Retail — 7.6%
Cato Corporation (The) - Class A		70,000		1,404,200
Home Depot, Inc. (The)		50,000		1,446,500
Ross Stores, Inc.		65,000		2,776,150
Sherwin-Williams Company (The)		35,000		2,157,750
				7,784,600
Textiles, Apparel & Luxury Goods — 2.9%
VF Corporation		40,000		2,929,600
Consumer Staples — 15.8%
Food & Staples Retailing — 3.0%
Sysco Corporation		110,000		3,073,400
Food Products — 6.5%
Hormel Foods Corporation		80,000		3,076,000
Kellogg Company		45,000		2,394,000
Lancaster Colony Corporation		25,000		1,242,500
				6,712,500
Household Products — 3.2%
Procter & Gamble Company (The)		55,000		3,334,650
Personal Products — 3.1%
Avon Products, Inc.		100,000		3,150,000
Energy — 11.1%
Energy Equipment & Services — 6.8%
Halliburton Company		125,000		3,761,250
Schlumberger Ltd.		50,000		3,254,500
				7,015,750
Oil, Gas & Consumable Fuels — 4.3%
Exxon Mobil Corporation		35,000		2,386,650
Peabody Energy Corporation		45,000		2,034,450
				4,421,100

22

AVE MARIA RISING DIVIDEND FUND

SCHEDULE OF INVESTMENTS (Continued)

COMMON STOCKS — 89.5% (Continued)	Shares		Market Value
Financials — 11.0%
Capital Markets — 3.3%
Federated Investors, Inc. - Class B		125,000	$	3,437,500
Commercial Banks — 3.2%
BB&T Corporation		30,000		761,100
Comerica, Inc.		30,000		887,100
United Bankshares, Inc.		80,000		1,597,600
				3,245,800
Insurance — 4.5%
Chubb Corporation (The)		45,000		2,213,100
HCC Insurance Holdings, Inc.		85,000		2,377,450
				4,590,550
Health Care — 10.5%
Health Care Equipment & Supplies — 7.3%
DENTSPLY International, Inc.		50,000		1,758,500
Medtronic, Inc.		40,000		1,759,200
Stryker Corporation		80,000		4,029,600
				7,547,300
Pharmaceuticals — 3.2%
Abbott Laboratories		60,000		3,239,400
Industrials — 15.3%
Aerospace & Defense — 5.0%
General Dynamics Corporation		40,000		2,726,800
United Technologies Corporation		35,000		2,429,350
				5,156,150
Electrical Equipment — 2.7%
Emerson Electric Company		65,000		2,769,000
Industrial Conglomerates — 4.5%
3M Company		40,000		3,306,800
Raven Industries, Inc.		40,000		1,270,800
				4,577,600
Machinery — 0.7%
PACCAR, Inc.		20,000		725,400
Trading Companies & Distributors — 2.4%
Fastenal Company		25,000		1,041,000
W.W. Grainger, Inc.		15,000		1,452,450
				2,493,450
Information Technology — 6.2%
IT Services — 3.0%
Paychex, Inc.		100,000		3,064,000

23

AVE MARIA RISING DIVIDEND FUND

SCHEDULE OF INVESTMENTS (Continued)

COMMON STOCKS — 89.5% (Continued)	Shares		Market Value
Information Technology — 6.2% (Continued)
Software — 3.2%
Jack Henry & Associates, Inc.		80,000	$	1,849,600
Nintendo Company Ltd. - ADR		50,000		1,491,000
				3,340,600
Materials — 2.0%
Chemicals — 2.0%
RPM International, Inc.		100,000		2,033,000
Utilities — 2.3%
Electric Utilities — 2.3%
FPL Group, Inc.		45,000		2,376,900
Total Common Stocks (Cost $79,914,990)			$	92,023,050

MONEY MARKET FUNDS — 10.9%	Shares		Market Value
Federated Government Obligations Tax-Managed Fund - Institutional Shares, 0.030% (a)		4,885,817	$	4,885,817
Federated Treasury Obligations Fund - Institutional Shares, 0.010% (a)		1,515,405		1,515,405
Federated U.S. Treasury Cash Reserve Fund - Institutional Shares, 0.000% (a)		4,865,643		4,865,643
Total Money Market Funds (Cost $11,266,865)			$	11,266,865
Total Investments at Market Value — 100.4% (Cost $91,181,855)			$	103,289,915
Liabilities in Excess of Other Assets — (0.4%)				(428,621	)
Net Assets — 100.0%			$	102,861,294

 ADR - American Depositary Receipt.

(a) The rate shown is the 7-day effective yield as of December 31, 2009.

See notes to financial statements.

24

AVE MARIA OPPORTUNITY FUND

PORTFOLIO MANAGER COMMENTARY

Dear Fellow Shareowner:

What a difference a year makes!  Last year at this time, amidst the worst financial crisis since the 1930s, the economy was sharply contracting and stock prices were plunging daily.  The capital markets were in disarray.  Apprehensive consumers and fearful investors were pessimistic about the present and worried about the future.  Some pundits warned the U.S. was on the brink of another Great Depression.    Not surprisingly, petrified stock market participants were aggressively liquidating their equity portfolios.  But guess what?  They should have been buying.  It was the ideal buying point – perhaps the buying opportunity of a lifetime.  History tells us the best investment opportunities often occur at the bleakest moments.  It is our view that wise investors take advantage of the low prices, which accompany bad times, to buy while the masses are selling.

After bottoming in March 2009, the stock market caught fire and ended the year with impressive gains.  For the year ended December 31, 2009, the Ave Maria Opportunity Fund (the “Fund”) gained 40.8%.  For the one-year, three-year, and since inception periods, the Fund has outperformed its primary benchmark the Russell 2000 Index, as well as the S&P 600 SmallCap Index:

	Average Annual Total Return For Periods Ending 12/31/09
	1 year			3 years			Since Inception*
Ave Maria Opportunity Fund		+40.8	%		-4.4	%		-1.5	%
Russell 2000 Index		+27.2	%		-6.1	%		-3.9	%
S&P 600 SmallCap Index		+25.6	%		-4.8	%		-3.4	%

* May 1, 2006

For the year, the Fund’s biggest gainers included Sparton Corporation +264% (electronic manufacturing services), Signet Jewelers Ltd. +208% (jewelry retailing), Rosetta Resources, Inc. +181% (oil & gas exploration), and Nabors Industries Ltd. +83% (oil & gas drilling).  Holdings which had a negative impact on performance during the year included Endo Pharmaceuticals Holdings, Inc. (specialty pharmaceuticals), Nintendo Company Ltd. (video game hardware & software), and Value Line, Inc. (investment analysis & data services).

After March 2009, the equity markets blazed skyward, as fear and pessimism were replaced by optimism.  Unprecedented government intervention helped avert a complete financial market meltdown.  The U.S. Treasury and Federal Reserve pumped massive amounts of liquidity into the system.  Fear of Great Depression II

25

AVE MARIA OPPORTUNITY FUND

PORTFOLIO MANAGER COMMENTARY (Continued)

subsided and the improving economic outlook along with a steadily rising stock market had investors energized and confident by year end.  Heading into 2010, institutional investors on average are quite optimistic.  This high level of bullish sentiment has us somewhat cautious.  As Warren Buffett famously advises, “Be greedy when others are fearful and be fearful when others are greedy.”  In this regard, it’s important to remember that the future rate of return on any investment is related to the price paid.   The higher the price paid, the lower the rate of return will be in the future.  Based solely on today’s higher prices, outsized gains like 2009’s are not likely this year.  Stock prices already reflect a healthy, sustained economic rebound, which may or may not materialize in 2010.

In managing the portfolio, we are emphasizing high quality, cash-rich companies with rock solid balance sheets, which enhance their ability to pay dividends.  Due to the broad-based stock market rally of 2009, it is our view that the number of new, attractive investment opportunities has diminished.  However, we continue to find companies selling well below our estimate of their intrinsic value.  Recent purchases that meet our investment criteria include Lancaster Colony Corporation (specialty food manufacturing), STERIS Corporation (specialty health-care products), and Sysco Corporation (foodservice distribution).  We are excited about the share price appreciation potential of these companies and many others in the Fund.

Thanks for being a shareholder of the Ave Maria Opportunity Fund.

With best regards,

Timothy S. Schwartz, CFA

Portfolio Manager

26

AVE MARIA OPPORTUNITY FUND

PERFORMANCE (Unaudited)

Comparison of the Change in Value of a $10,000 Investment

in the Ave Maria Opportunity Fund and the Russell 2000 Index

(a)	The returns shown do not reflect the deduction of taxes a shareholder would pay on Fund distributions or the redemption of Fund shares.
(b)	Represents the period from the commencement of operations (May 1, 2006) through December 31, 2009.

Expense Ratio information as of:	12-31-08 (as disclosed in May 1, 2009 prospectus)	12-31-09
Gross	2.32%	2.31%
Net	1.28%	1.25%

27

AVE MARIA OPPORTUNITY FUND

TEN LARGEST EQUITY HOLDINGS

December 31, 2009 (Unaudited)

Shares		Company	Market Value		% of Net Assets
	25,000	Sysco Corporation	$	698,500		4.1	%
	25,000	Federated Investors, Inc. - Class B		687,500		4.1	%
	22,000	Nintendo Company Ltd. - ADR		656,040		3.9	%
	13,000	Automatic Data Processing, Inc.		556,660		3.3	%
	4,745	SPDR Gold Trust		509,186		3.0	%
	10,000	Stryker Corporation		503,700		3.0	%
	15,000	Forest Laboratories, Inc.		481,650		2.9	%
	10,000	Varian Medical Systems, Inc.		468,500		2.8	%
	7,500	Rockwell Collins, Inc.		415,200		2.5	%
	10,000	Accenture PLC - Class A		415,000		2.5	%

ASSET ALLOCATION (Unaudited)

Sector	% of Net Assets
Consumer Discretionary		3.6	%
Consumer Staples		6.5	%
Energy		15.1	%
Financials		14.4	%
Health Care		11.4	%
Industrials		7.4	%
Information Technology		14.3	%
Exchange-Traded Funds		3.0	%
Cash Equivalents, Other Assets and Liabilities		24.3	%
		100.0	%

28

AVE MARIA OPPORTUNITY FUND

SCHEDULE OF INVESTMENTS

December 31, 2009

COMMON STOCKS — 72.7%	Shares		Market Value
Consumer Discretionary — 3.6%
Internet & Catalog Retail — 0.8%
Stamps.com, Inc. *		15,000	$	135,000
Specialty Retail — 2.1%
Ross Stores, Inc.		2,000		85,420
Signet Jewelers Ltd. *		10,000		267,200
				352,620
Textiles, Apparel & Luxury Goods — 0.7%
K-Swiss, Inc. - Class A *		11,700		116,298
Consumer Staples — 6.5%
Food & Staples Retailing — 4.1%
Sysco Corporation		25,000		698,500
Food Products — 2.4%
Lancaster Colony Corporation		8,000		397,600
Energy — 15.1%
Energy Equipment & Services — 8.4%
Atwood Oceanics, Inc. *		4,000		143,400
ENSCO International PLC - ADR		6,000		239,640
Nabors Industries Ltd. *		15,000		328,350
National Oilwell Varco, Inc.		2,500		110,225
Patterson-UTI Energy, Inc.		20,000		307,000
Rowan Companies, Inc. *		12,500		283,000
				1,411,615
Oil, Gas & Consumable Fuels — 6.7%
Cimarex Energy Company		3,500		185,395
Exxon Mobil Corporation		3,000		204,570
Rosetta Resources, Inc. *		15,000		298,950
St. Mary Land & Exploration Company		7,500		256,800
XTO Energy, Inc.		4,000		186,120
				1,131,835
Financials — 14.4%
Capital Markets — 5.0%
Federated Investors, Inc. - Class B		25,000		687,500
Investment Technology Group, Inc. *		8,000		157,600
				845,100
Diversified Financial Services — 3.6%
Dun & Bradstreet Corporation (The)		2,000		168,740
Leucadia National Corporation *		13,000		309,270
Morningstar, Inc. *		1,500		72,510
Value Line, Inc.		1,880		47,207
				597,727

29

AVE MARIA OPPORTUNITY FUND

SCHEDULE OF INVESTMENTS (Continued)

COMMON STOCKS — 72.7% (Continued)	Shares		Market Value
Financials — 14.4% (Continued)
Insurance — 5.8%
Alleghany Corporation *		1,174	$	324,024
Markel Corporation *		500		170,000
Meadowbrook Insurance Group, Inc.		20,000		148,000
White Mountains Insurance Group Ltd.		1,000		332,660
				974,684
Health Care — 11.4%
Health Care Equipment & Supplies — 7.1%
Kinetic Concepts, Inc. *		4,200		158,130
STERIS Corporation		2,000		55,940
Stryker Corporation		10,000		503,700
Varian Medical Systems, Inc. *		10,000		468,500
				1,186,270
Pharmaceuticals — 4.3%
Endo Pharmaceuticals Holdings, Inc. *		12,000		246,120
Forest Laboratories, Inc. *		15,000		481,650
				727,770
Industrials — 7.4%
Aerospace & Defense — 7.4%
Boeing Company (The)		1,500		81,195
General Dynamics Corporation		3,000		204,510
Northrop Grumman Corporation		5,000		279,250
Rockwell Collins, Inc.		7,500		415,200
Sparton Corporation *		42,115		254,374
				1,234,529
Information Technology — 14.3%
Communications Equipment — 0.9%
Harris Corporation		3,000		142,650
Computers & Peripherals — 0.9%
Teradata Corporation *		5,000		157,150
Electronic Equipment, Instruments & Components — 2.8%
Arrow Electronics, Inc. *		5,000		148,050
Avnet, Inc. *		5,000		150,800
Ingram Micro, Inc. - Class A *		10,000		174,500
				473,350
IT Services — 5.8%
Accenture PLC - Class A		10,000		415,000
Automatic Data Processing, Inc.		13,000		556,660
				971,660
Software — 3.9%
Nintendo Company Ltd. - ADR		22,000		656,040
Total Common Stocks (Cost $9,110,784)			$	12,210,398

 

30

AVE MARIA OPPORTUNITY FUND

SCHEDULE OF INVESTMENTS (Continued)

EXCHANGE-TRADED FUNDS — 3.0%	Shares		Market Value
SPDR Gold Trust * (Cost $410,954)		4,745	$	509,186

REPURCHASE AGREEMENTS (a) — 10.3%	Face Amount		Market Value
U.S. Bank N.A., 0.010%, dated 12/31/09, due 01/04/10, repurchase proceeds: $1,723,118 (Cost $1,723,117)	$	1,723,117	$	1,723,117

MONEY MARKET FUNDS — 13.3%	Shares		Market Value
Federated Government Obligations Tax-Managed Fund - Institutional Shares, 0.030% (b)		744,409	$	744,409
Federated Treasury Obligations Fund - Institutional Shares, 0.010% (b)		744,408		744,408
Federated U.S. Treasury Cash Reserve Fund - Institutional Shares, 0.000% (b)		744,408		744,408
Total Money Market Funds (Cost $2,233,225)			$	2,233,225
Total Investments at Market Value — 99.3% (Cost $13,478,080)			$	16,675,926
Other Assets in Excess of Liabilities — 0.7%				110,634
Net Assets — 100.0%			$	16,786,560

ADR - American Depositary Receipt.

*	Non-income producing security.
(a)	Repurchase agreement is fully collateralized by $1,723,117 FNCI Pool 729590, 4.50%, due 07/01/18.  The aggregate market value of the collateral at December 31, 2009 was $1,757,781.
(b)	The rate shown is the 7-day effective yield as of December 31, 2009.

See notes to financial statements.

31

AVE MARIA BOND FUND

PORTFOLIO MANAGER COMMENTARY

Dear Fellow Shareholders:

2009 was a good year for the Ave Maria Bond Fund (the “Fund”).  The total return for Class R shares of the Fund for the year ended December 31, 2009 was 10.2% versus 5.2% for the Barclays Capital U.S. Intermediate Government/Credit Index.

In many respects, 2009 was the unwinding of 2008.  In 2008, U.S. Treasuries did well in a period of extreme market turmoil, as investors stampeded into the very highest quality debt instruments.  Because of their very low credit risk, the prices were pushed so high that the yield on the ten-year Treasury was a paltry 2.3% at the start of 2009.   In the midst of the panic, the yield on 30-day T-bills was actually negative.  As the credit markets stabilized during 2009, many investors regained confidence and sold their Treasuries to purchase corporate bonds which offered significantly higher yields.  This had the effect of driving Treasury prices down and pushing the prices of virtually everything else up.  So in 2009, Treasuries underperformed other fixed-income assets.

In our shareholder letter of last year, we expressed the view that U.S. Treasury prices were bid up to dangerously high levels.  Consistent with that view, we sharply reduced the Fund’s position in Treasuries, and increased the Fund’s holdings of corporate bonds and carefully selected equities.  This proved providential in 2009 and added significantly to the Fund’s performance.  Important contributions to performance came from Treasury Inflation Protected Securities (TIPs).  A number of individual U.S. Treasury issues also added to positive results.  Performance was hampered modestly by selected intermediate maturity corporate bonds.

With credit spreads now tight, the credit panic has passed.  Today, we see inflation as the most serious menace facing investors.    Massive government intervention to stimulate the economy and stabilize the financial markets, together with a plethora of new government programs, will likely result in higher taxes and higher inflation.  The almost certain result of higher inflation will be higher interest rates.  We have positioned the holdings in the Fund for this threat by shortening the average bond maturity in the portfolio and holding a significant position in TIPs.  We also continue to selectively purchase corporate bonds and high quality common stocks (up to 20% of the Fund’s portfolio).

A year ago investors’ concerns seemed to emanate from what was happening on Wall Street.  Now the major concerns seem to be focused on what’s coming out of Washington.  With broad regulatory changes in play and a massive new entitlement program pending, the stakes are high.  We have serious reservations about the long-term economic consequences of a number of these potential changes.

32

AVE MARIA BOND FUND

PORTFOLIO MANAGER COMMENTARY (Continued)

Notwithstanding, we are confident that the Fund is positioned to achieve a favorable return consistent with a prudent level of risk while continuing to meet the moral mandates as established by the Ave Maria Catholic Advisory Board.  We appreciate your continued participation in the Ave Maria Bond Fund.

With best regards,

Richard L. Platte, Jr., CFA

Portfolio Manager

33

AVE MARIA BOND FUND

PERFORMANCE (Unaudited)

Comparison of the Change in Value of a $10,000 Investment

in the Ave Maria Bond Fund and the Barclays Capital U.S.

Intermediate Government/Credit Index

(a)	The returns shown do not reflect the deduction of taxes a shareholder would pay on Fund distributions or the redemption of Fund shares.
(b)	Represents the period from the commencement of operations (May 1, 2003) through December 31, 2009.

Class R Expense Ratio information as of:	12-31-08 (as disclosed in May 1, 2009 prospectus)	12-31-09
Gross	0.92%	0.93%
Net	0.71%	0.66%
Class I Expense Ratio information as of:	12-31-08 (as disclosed in May 1, 2009 prospectus)	12-31-09
Gross	0.71%	0.70%
Net	0.41%	0.40%

34

AVE MARIA BOND FUND

ANNUAL TOTAL RATES OF RETURN

COMPARISON WITH MAJOR INDICES (Unaudited)

	AVE MARIA BOND FUND CLASS I			AVE MARIA BOND FUND CLASS R			BARCLAYS CAPITAL U.S. INTERMEDIATE GOVERNMENT/ CREDIT INDEX
2003 (a)		2.6	%		2.4	%		1.9	%
2004		5.5	%		5.1	%		3.0	%
2005		1.8	%		1.4	%		1.6	%
2006		6.2	%		6.0	%		4.1	%
2007		5.1	%		4.8	%		7.4	%
2008		0.4	%		0.3	%		5.1	%
2009		10.4	%		10.2	%		5.2	%

AVERAGE ANNUAL TOTAL RETURNS

As of December 31, 2009 (Unaudited)

	AVE MARIA BOND FUND CLASS I			AVE MARIA BOND FUND CLASS R			BARCLAYS CAPITAL U.S. INTERMEDIATE GOVERNMENT/ CREDIT INDEX
3 Years		5.3	%		5.0	%		5.9	%
5 Years		4.7	%		4.5	%		4.7	%
Since Inception		4.8	%		4.5	%		4.2	%

(a) Represents the period from the commencement of operations (May 1, 2003) through December 31, 2003.

35

AVE MARIA BOND FUND

TEN LARGEST HOLDINGS*

December 31, 2009 (Unaudited)

Par Value		Holding	Market Value		% of Net Assets
$	4,000,000	U.S. Treasury Notes, 0.750%, due 11/30/11	$	3,973,908		7.3	%
	2,140,820	U.S. Treasury Inflation-Protected Notes, 2.500%, due 07/15/16		2,331,319		4.3	%
	1,500,000	Private Export Funding Corporation, 5.685%, due 05/15/12		1,644,882		3.0	%
	1,500,000	U.S. Treasury Notes, 2.375%, due 08/31/14		1,488,984		2.7	%
	1,043,010	U.S. Treasury Inflation-Protected Notes, 2.625%, due 07/15/17		1,147,067		2.1	%
	1,000,000	Hewlett-Packard Company, 6.125%, due 03/01/14		1,117,387		2.0	%
	1,000,000	Praxair, Inc., 6.375%, due 04/01/12		1,098,857		2.0	%
	1,000,000	Southern Power Company, 6.250%, due 07/15/12		1,089,021		2.0	%
	1,000,000	PPG Industries, Inc., 6.650%, due 03/15/18		1,088,548		2.0	%
	1,000,000	Cooper US, Inc., 5.450%, due 04/01/15		1,078,254		2.0	%

* Excludes cash equivalents.

ASSET ALLOCATION (Unaudited)

	% of Net Assets
U.S. GOVERNMENT & AGENCY OBLIGATIONS
U.S. Treasuries		18.2	%
U.S. Government Agencies		15.0	%
CORPORATE BONDS
Sector
Consumer Discretionary		6.7	%
Consumer Staples		5.1	%
Energy		3.9	%
Financials		6.8	%
Industrials		7.7	%
Information Technology		4.1	%
Materials		4.0	%
Telecommunication Services		2.1	%
Utilities		3.9	%
COMMON STOCKS
Sector
Consumer Discretionary		4.0	%
Consumer Staples		3.5	%
Financials		3.4	%
Health Care		0.8	%
Industrials		2.7	%
Information Technology		1.1	%
Materials		0.8	%
Utilities		3.1	%
Cash Equivalents, Other Assets and Liabilities		3.1	%
		100.0	%

36

AVE MARIA BOND FUND

SCHEDULE OF INVESTMENTS

December 31, 2009

U.S. TREASURY OBLIGATIONS — 18.2%	Par Value		Market Value
U.S. Treasury Inflation-Protected Notes — 6.4%
2.500%, due 07/15/16	$	2,140,820	$	2,331,319
2.625%, due 07/15/17		1,043,010		1,147,067
				3,478,386
U.S. Treasury Notes — 11.8%
1.750%, due 11/15/11		1,000,000		1,012,617
0.750%, due 11/30/11		4,000,000		3,973,908
2.375%, due 08/31/14		1,500,000		1,488,984
				6,475,509
Total U.S. Treasury Obligations (Cost $9,722,069)			$	9,953,895

U.S. GOVERNMENT & AGENCY OBLIGATIONS — 15.0%	Par Value		Market Value
Federal Farm Credit Bank — 5.9%
4.480%, due 08/24/12	$	1,000,000	$	1,071,008
4.600%, due 12/27/12		1,000,000		1,077,452
4.500%, due 01/22/15		1,000,000		1,067,162
				3,215,622
Federal Home Loan Bank — 5.1%
5.000%, due 09/01/10		1,000,000		1,029,194
2.650%, due 08/12/13		750,000		753,059
4.050%, due 11/26/13		500,000		514,299
3.740%, due 02/06/14		500,000		520,090
				2,816,642
Private Export Funding Corporation — 4.0%
5.685%, due 05/15/12		1,500,000		1,644,882
3.550%, due 04/15/13		500,000		522,727
				2,167,609
Total U.S. Government & Agency Obligations (Cost $7,923,406)			$	8,199,873

37

AVE MARIA BOND FUND

SCHEDULE OF INVESTMENTS (Continued)

CORPORATE BONDS — 44.3%	Par Value		Market Value
Consumer Discretionary — 6.7%
Home Depot, Inc. (The), 5.400%, due 03/01/16	$	1,000,000	$	1,046,860
Johnson Controls, Inc., 5.500%, due 01/15/16		500,000		508,537
Lowe’s Companies, Inc., 5.000%, due 10/15/15		500,000		541,446
McGraw-Hill Companies, Inc. (The), 5.375%, due 11/15/12		500,000		529,243
Stanley Works (The), 5.000%, due 03/15/10		1,000,000		1,006,168
				3,632,254
Consumer Staples — 5.1%
Avon Products, Inc., 5.625%, due 03/01/14		500,000		544,949
Hormel Foods Corporation, 6.625%, due 06/01/11		600,000		641,888
Kraft Foods, Inc., 6.000%, due 02/11/13		500,000		536,204
Sysco Corporation, 4.200%, due 02/12/13		1,000,000		1,046,153
				2,769,194
Energy — 3.9%
Apache Corporation, 5.625%, due 01/15/17		1,000,000		1,065,991
Halliburton Company, 5.500%, due 10/15/10		1,000,000		1,040,686
				2,106,677
Financials — 6.8%
BB&T Corporation, 4.750%, due 10/01/12		1,000,000		1,041,012
Burlington Resources Financial Company, 6.500%, due 12/01/11		500,000		547,228
Caterpillar Financial Services Corporation, 4.750%, due 02/17/15		1,000,000		1,049,710
National Rural Utilities Cooperative Finance Corporation, 4.750%, due 03/01/14		1,000,000		1,062,068
				3,700,018
Industrials — 7.7%
Cooper US, Inc., 5.450%, due 04/01/15		1,000,000		1,078,254
Dover Corporation, 6.500%, due 02/15/11		1,000,000		1,056,419
Eaton Corporation, 4.900%, due 05/15/13		500,000		529,084
R.R. Donnelley & Sons Company, 4.950%, due 05/15/10		500,000		503,570
United Technologies Corporation, 6.350%, due 03/01/11		1,000,000		1,059,872
				4,227,199
Information Technology — 4.1%
Hewlett-Packard Company, 6.125%, due 03/01/14		1,000,000		1,117,387
International Business Machines Corporation, 4.750%, due 11/29/12		500,000		537,172
International Business Machines Corporation, 6.500%, due 10/15/13		500,000		571,380
				2,225,939
Materials — 4.0%
PPG Industries, Inc., 6.650%, due 03/15/18		1,000,000		1,088,548
Praxair, Inc., 6.375%, due 04/01/12		1,000,000		1,098,857
				2,187,405

38

AVE MARIA BOND FUND

SCHEDULE OF INVESTMENTS (Continued)

CORPORATE BONDS — 44.3% (Continued)	Par Value		Market Value
Telecommunication Services — 2.1%
Verizon Communications, Inc., 4.350%, due 02/15/13	$	500,000	$	523,011
Verizon Communications, Inc., 4.900%, due 09/15/15		600,000		636,839
				1,159,850
Utilities — 3.9%
FPL Group Capital, Inc., 5.625%, due 09/01/11		1,000,000		1,063,728
Southern Power Company, 6.250%, due 07/15/12		1,000,000		1,089,021
				2,152,749
Total Corporate Bonds (Cost $23,428,716)			$	24,161,285

COMMON STOCKS — 19.4%	Shares		Market Value
Consumer Discretionary — 4.0%
Distributors — 1.0%
Genuine Parts Company		15,000	$	569,400
Specialty Retail — 1.9%
Cato Corporation (The) - Class A		10,000		200,600
Home Depot, Inc. (The)		16,000		462,880
Sherwin-Williams Company (The)		6,000		369,900
				1,033,380
Textiles, Apparel & Luxury Goods — 1.1%
VF Corporation		8,000		585,920
Consumer Staples — 3.5%
Food & Staples Retailing — 1.3%
Sysco Corporation		25,000		698,500
Household Products — 1.3%
Procter & Gamble Company (The)		12,000		727,560
Personal Products — 0.9%
Avon Products, Inc.		15,000		472,500
Financials — 3.4%
Capital Markets — 1.5%
Federated Investors, Inc. - Class B		30,000		825,000
Commercial Banks — 1.4%
BB&T Corporation		10,000		253,700
United Bankshares, Inc.		25,000		499,250
				752,950
Insurance — 0.5%
Chubb Corporation (The)		6,000		295,080

39

AVE MARIA BOND FUND

SCHEDULE OF INVESTMENTS (Continued)

COMMON STOCKS — 19.4% (Continued)	Shares		Market Value
Health Care — 0.8%
Pharmaceuticals — 0.8%
Abbott Laboratories		8,000	$	431,920
Industrials — 2.7%
Electrical Equipment — 1.2%
Emerson Electric Company		15,000		639,000
Industrial Conglomerates — 1.5%
3M Company		10,000		826,700
Information Technology — 1.1%
IT Services — 1.1%
Paychex, Inc.		20,000		612,800
Materials — 0.8%
Chemicals — 0.8%
RPM International, Inc.		20,000		406,600
Utilities — 3.1%
Electric Utilities — 2.0%
FPL Group, Inc.		10,000		528,200
Southern Company (The)		17,000		566,440
				1,094,640
Multi-Utilities — 1.1%
NSTAR		16,000		588,800
Total Common Stocks (Cost $9,189,881)			$	10,560,750

MONEY MARKET FUNDS — 2.9%	Shares		Market Value
Federated Government Obligations Tax-Managed Fund - Institutional Shares, 0.030% (a) (Cost $1,565,353)		1,565,353	$	1,565,353
Total Investments at Market Value — 99.8% (Cost $51,829,425)			$	54,441,156
Other Assets in Excess of Liabilities — 0.2%				103,584
Net Assets — 100.0%			$	54,544,740

(a) The rate shown is the 7-day effective yield as of December 31, 2009.

See notes to financial statements.

40

AVE MARIA MUTUAL FUNDS

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2009

	Ave Maria Catholic Values Fund			Ave Maria Growth Fund			Ave Maria Rising Dividend Fund			Ave Maria Opportunity Fund			Ave Maria Bond Fund
ASSETS
Investment securities:
At amortized cost	$	144,759,358		$	106,428,608		$	91,181,855		$	11,754,963		$	51,829,425
At market value (Note 1)	$	169,932,516		$	115,866,867		$	103,289,915		$	14,952,809		$	54,441,156
Repurchase agreements (Note 1)		1,604,040			—			—			1,723,117			—
Receivable for capital shares sold		98,333			67,202			67,895			117,560			30,768
Receivable for investment securities sold		1,067,747			—			502,497			46,488			—
Dividends and interest receivable		114,490			103,550			126,303			12,716			543,185
Other assets		22,118			18,676			18,414			8,370			13,963
TOTAL ASSETS		172,839,244			116,056,295			104,005,024			16,861,060			55,029,072
LIABILITIES
Payable for investment securities purchased		1,651,410			—			724,635			—			—
Payable for capital shares redeemed		52,148			104,124			187,135			41,015			415,694
Payable to Adviser (Note 2)		413,817			273,487			193,232			18,318			15,669
Payable to administrator (Note 2)		21,200			14,400			12,900			4,000			4,600
Accrued distribution fees (Note 2)		29,623			10,757			—			—			30,358
Other accrued expenses		36,776			27,194			25,828			11,167			18,011
TOTAL LIABILITIES		2,204,974			429,962			1,143,730			74,500			484,332
NET ASSETS	$	170,634,270		$	115,626,333		$	102,861,294		$	16,786,560		$	54,544,740
NET ASSETS CONSIST OF:
Paid-in capital	$	177,459,695		$	108,629,716		$	102,437,926		$	18,310,102		$	52,873,202
Undistributed net investment income		22,829			—			15,986			—			289
Accumulated net realized losses from security transactions		(32,021,412	)		(2,441,642	)		(11,700,678	)		(4,721,388	)		(940,482	)
Net unrealized appreciation on investments		25,173,158			9,438,259			12,108,060			3,197,846			2,611,731
NET ASSETS	$	170,634,270		$	115,626,333		$	102,861,294		$	16,786,560		$	54,544,740
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value)		12,519,769			7,112,601			9,551,776			1,842,706
Net asset value, offering price and redemption price per share (Note 1)	$	13.63		$	16.26		$	10.77		$	9.11
PRICING OF CLASS I SHARES
Net assets applicable to Class I shares													$	2,756,913
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value)														262,768
Net asset value, offering price and redemption price per share (Note 1)													$	10.49
PRICING OF CLASS R SHARES
Net assets applicable to Class R shares													$	51,787,827
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value														4,942,432
Net asset value, offering price and redemption price per share (Note 1)													$	10.48

See notes to financial statements.

41

AVE MARIA MUTUAL FUNDS

STATEMENTS OF OPERATIONS

For the Year Ended December 31, 2009

	Ave Maria Catholic Values Fund			Ave Maria Growth Fund			Ave Maria Rising Dividend Fund			Ave Maria Opportunity Fund			Ave Maria Bond Fund
INVESTMENT INCOME
Dividends	$	2,237,297		$	1,276,758		$	2,091,514		$	125,191		$	364,209
Foreign withholding taxes on dividends		(1,121	)		—			(2,022	)		(1,011	)		—
Interest		47			—			1			71			1,386,684
TOTAL INCOME		2,236,223			1,276,758			2,089,493			124,251			1,750,893
EXPENSES
Investment advisory fees (Note 2)		1,423,043			949,609			619,022			124,388			147,258
Shareholder servicing fees (Note 2)		355,759			237,401			—			—			—
Shareholder servicing fees - Class R (Note 2)		—			—			—			—			112,220
Administration, accounting and transfer agent fees (Note 2)		213,535			142,470			123,930			48,000			50,344
Legal and audit fees		51,641			41,296			39,209			24,367			30,900
Postage and supplies		66,047			47,572			35,498			14,232			20,690
Trustees’ fees and expenses		29,346			29,346			29,346			29,346			29,346
Registration fees - Common		13,086			25,841			24,060			19,102			14,890
Registration fees - Class I		—			—			—			—			1,158
Registration fees - Class R		—			—			—			—			7,620
Custodian and bank service fees		15,658			11,062			11,648			7,888			6,155
Insurance expense		15,207			9,463			7,452			1,626			4,916
Advisory board fees and expenses		5,667			5,667			5,667			5,667			5,667
Compliance service fees (Note 2)		8,629			5,778			5,057			774			3,009
Other expenses		27,839			20,057			18,919			12,701			14,033
TOTAL EXPENSES		2,225,457			1,525,562			919,808			288,091			448,206
Less fee reductions and/or expense reimbursements by the Adviser (Note 2):
Common		(90,895	)		(101,151	)		—			(132,606	)		(134,568	)
Class I		—			—			—			—			(1,158	)
NET EXPENSES		2,134,562			1,424,411			919,808			155,485			312,480
NET INVESTMENT INCOME/(LOSS)		101,661			(147,653	)		1,169,685			(31,234	)		1,438,413
REALIZED AND UNREALIZED GAINS/(LOSSES) ON INVESTMENTS
Net realized gains/(losses) from security transactions		(26,952,403	)		(2,247,782	)		(7,446,166	)		460,366			(867,627	)
Net change in unrealized appreciation/(depreciation) on investments		73,480,417			26,107,379			26,648,284			3,818,418			4,337,523
NET REALIZED AND UNREALIZED GAINS ON INVESTMENTS		46,528,014			23,859,597			19,202,118			4,278,784			3,469,896
NET INCREASE IN NET ASSETS FROM OPERATIONS	$	46,629,675		$	23,711,944		$	20,371,803		$	4,247,550		$	4,908,309

See notes to financial statements.

42

AVE MARIA CATHOLIC VALUES FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended December 31, 2009			Year Ended December 31, 2008
FROM OPERATIONS
Net investment income/(loss)	$	101,661		$	(57,925	)
Net realized losses from security transactions		(26,952,403	)		(4,633,168	)
Net increase from payment by Adviser due to the disposal of investments in violation of investment restrictions (Note 2)		—			71,643
Net change in unrealized appreciation/(depreciation) on investments		73,480,417			(79,456,983	)
Net increase/(decrease) in net assets from operations		46,629,675			(84,076,433	)
FROM DISTRIBUTIONS TO SHAREHOLDERS
From net investment income		(78,832	)		—
From net realized gains on investments		—			(153,313	)
Decrease in net assets from distributions to shareholders		(78,832	)		(153,313	)
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold		17,706,350			18,369,650
Reinvestment of distributions to shareholders		71,637			142,924
Payments for shares redeemed		(26,508,258	)		(48,664,576	)
Net decrease in net assets from capital share transactions		(8,730,271	)		(30,152,002	)
TOTAL INCREASE/(DECREASE) IN NET ASSETS		37,820,572			(114,381,748	)
NET ASSETS
Beginning of year		132,813,698			247,195,446
End of year	$	170,634,270		$	132,813,698
UNDISTRIBUTED NET INVESTMENT INCOME	$	22,829		$	—
SUMMARY OF CAPITAL SHARE ACTIVITY
Shares sold		1,597,482			1,362,273
Shares issued in reinvestment of distributions to shareholders		5,221			10,115
Shares redeemed		(2,490,518	)		(3,706,955	)
Net decrease in shares outstanding		(887,815	)		(2,334,567	)
Shares outstanding, beginning of year		13,407,584			15,742,151
Shares outstanding, end of year		12,519,769			13,407,584

See notes to financial statements.

43

AVE MARIA GROWTH FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended December 31, 2009			Year Ended December 31, 2008
FROM OPERATIONS
Net investment loss	$	(147,653	)	$	(364,421	)
Net realized losses from security transactions		(2,247,782	)		(193,860	)
Net change in unrealized appreciation/(depreciation) on investments		26,107,379			(38,479,379	)
Net increase/(decrease) in net assets from operations		23,711,944			(39,037,660	)
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold		26,840,519			33,334,414
Payments for shares redeemed		(18,837,145	)		(27,123,013	)
Net increase in net assets from capital share transactions		8,003,374			6,211,401
TOTAL INCREASE/(DECREASE) IN NET ASSETS		31,715,318			(32,826,259	)
NET ASSETS
Beginning of year		83,911,015			116,737,274
End of year	$	115,626,333		$	83,911,015
UNDISTRIBUTED NET INVESTMENT INCOME	$	—		$	—
SUMMARY OF CAPITAL SHARE ACTIVITY
Shares sold		2,011,419			2,116,103
Shares redeemed		(1,424,147	)		(1,753,216	)
Net increase in shares outstanding		587,272			362,887
Shares outstanding, beginning of year		6,525,329			6,162,442
Shares outstanding, end of year		7,112,601			6,525,329

See notes to financial statements.

44

AVE MARIA RISING DIVIDEND FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended December 31, 2009			Year Ended December 31, 2008
FROM OPERATIONS
Net investment income	$	1,169,685		$	1,051,609
Net realized losses from security transactions		(7,446,166	)		(4,231,278	)
Net change in unrealized appreciation/(depreciation) on investments		26,648,284			(15,273,537	)
Net increase/(decrease) in net assets from operations		20,371,803			(18,453,206	)
FROM DISTRIBUTIONS TO SHAREHOLDERS
From net investment income		(1,175,419	)		(1,048,615	)
From net realized gains on investments		—			(528,113	)
Decrease in net assets from distributions to shareholders		(1,175,419	)		(1,576,728	)
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold		34,004,905			22,389,244
Reinvestment of distributions to shareholders		902,904			1,171,143
Payments for shares redeemed		(18,344,942	)		(19,170,935	)
Net increase in net assets from capital share transactions		16,562,867			4,389,452
TOTAL INCREASE/(DECREASE) IN NET ASSETS		35,759,251			(15,640,482	)
NET ASSETS
Beginning of year		67,102,043			82,742,525
End of year	$	102,861,294		$	67,102,043
UNDISTRIBUTED NET INVESTMENT INCOME	$	15,986		$	21,707
SUMMARY OF CAPITAL SHARE ACTIVITY
Shares sold		3,739,324			2,208,872
Shares issued in reinvestment of distributions to shareholders		98,164			114,033
Shares redeemed		(1,979,482	)		(1,796,967	)
Net increase in shares outstanding		1,858,006			525,938
Shares outstanding, beginning of year		7,693,770			7,167,832
Shares outstanding, end of year		9,551,776			7,693,770

See notes to financial statements.

45

AVE MARIA OPPORTUNITY FUND

STATEMENT OF CHANGES IN NET ASSETS

	Year Ended December 31, 2009			Year Ended December 31, 2008
FROM OPERATIONS
Net investment income/(loss)	$	(31,234	)	$	39,009
Net realized gains/(losses) from security transactions		460,366			(4,387,342	)
Net change in unrealized appreciation/(depreciation) on investments		3,818,418			(458,586	)
Net increase/(decrease) in net assets from operations		4,247,550			(4,806,919	)
FROM DISTRIBUTIONS TO SHAREHOLDERS
From net investment income		—			(38,915	)
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold		6,802,984			4,469,008
Reinvestment of distributions to shareholders		—			28,483
Payments for shares redeemed		(4,123,128	)		(7,955,976	)
Net increase/(decrease) in net assets from capital share transactions		2,679,856			(3,458,485	)
TOTAL INCREASE/(DECREASE) IN NET ASSETS		6,927,406			(8,304,319	)
NET ASSETS
Beginning of year		9,859,154			18,163,473
End of year	$	16,786,560		$	9,859,154
UNDISTRIBUTED NET INVESTMENT INCOME	$	—		$	94
SUMMARY OF CAPITAL SHARE ACTIVITY
Shares sold		876,955			533,134
Shares issued in reinvestment of distributions to shareholders		—			4,501
Shares redeemed		(559,180	)		(909,010	)
Net increase/(decrease) in shares outstanding		317,775			(371,375	)
Shares outstanding, beginning of year		1,524,931			1,896,306
Shares outstanding, end of year		1,842,706			1,524,931

See notes to financial statements.

46

AVE MARIA BOND FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended December 31, 2009			Year Ended December 31, 2008
FROM OPERATIONS
Net investment income	$	1,438,413		$	1,746,107
Net realized losses from security transactions		(867,627	)		(72,855	)
Net change in unrealized appreciation/(depreciation) on investments		4,337,523			(1,831,706	)
Net increase/(decrease) in net assets from operations		4,908,309			(158,454	)
FROM DISTRIBUTIONS TO SHAREHOLDERS
From net investment income, Class I		(129,497	)		(299,506	)
From net investment income, Class R		(1,311,992	)		(1,442,217	)
From net realized gains on investments, Class I		—			(8	)
From net realized gains on investments, Class R		—			(56	)
Decrease in net assets from distributions to shareholders		(1,441,489	)		(1,741,787	)
FROM CAPITAL SHARE TRANSACTIONS
CLASS I
Proceeds from shares sold		160,000			285,969
Payments for shares redeemed		(3,000,000	)		(4,674,138	)
Net decrease in net assets from Class I capital share transactions		(2,840,000	)		(4,388,169	)
CLASS R
Proceeds from shares sold		18,755,472			17,577,292
Reinvestment of distributions to shareholders		1,154,469			1,180,871
Payments for shares redeemed		(9,448,338	)		(13,110,054	)
Net increase in net assets from Class R capital share transactions		10,461,603			5,648,109
TOTAL INCREASE/(DECREASE) IN NET ASSETS		11,088,423			(640,301	)
NET ASSETS
Beginning of year		43,456,317			44,096,618
End of year	$	54,544,740		$	43,456,317
UNDISTRIBUTED NET INVESTMENT INCOME	$	289		$	3,365
SUMMARY OF CAPITAL SHARE ACTIVITY
CLASS I
Shares sold		15,355			29,479
Shares redeemed		(295,342	)		(465,227	)
Net decrease in shares outstanding		(279,987	)		(435,748	)
Shares outstanding, beginning of year		542,755			978,503
Shares outstanding, end of year		262,768			542,755
CLASS R
Shares sold		1,873,729			1,741,662
Shares issued in reinvestment of distributions to shareholders		114,465			118,040
Shares redeemed		(941,361	)		(1,340,176	)
Net increase in shares outstanding		1,046,833			519,526
Shares outstanding, beginning of year		3,895,599			3,376,073
Shares outstanding, end of year		4,942,432			3,895,599

See notes to financial statements.

47

AVE MARIA CATHOLIC VALUES FUND

FINANCIAL HIGHLIGHTS

Per Share Data for a Share Outstanding Throughout Each Year

	Year Ended December 31, 2009			Year Ended December 31, 2008			Year Ended December 31, 2007			Year Ended December 31, 2006			Year Ended December 31, 2005
Net asset value at beginning of year	$	9.91		$	15.70		$	16.50		$	15.06		$	14.62
Income/(loss) from investment operations:
Net investment income/(loss)		0.01			(0.00	)(a)		0.00	(a)		(0.04	)		(0.04	)
Net realized and unrealized gains/(losses) on investments		3.72			(5.78	)		(0.67	)		2.18			0.89
Total from investment operations		3.73			(5.78	)		(0.67	)		2.14			0.85
Less distributions:
From net investment income		(0.01	)		—			(0.00	)(a)		—			—
From net realized gains on investments		—			(0.01	)		(0.13	)		(0.70	)		(0.41	)
Total distributions		(0.01	)		(0.01	)		(0.13	)		(0.70	)		(0.41	)
Net asset value at end of year	$	13.63		$	9.91		$	15.70		$	16.50		$	15.06
Total return (b)		37.6%			(36.8%	)(c)		(4.0%	)(c)		14.2%			5.8%
Ratios/Supplementary Data:
Net assets at end of year (000’s)	$	170,634		$	132,814		$	247,195		$	258,012		$	246,375
Ratio of net expenses to average net assets (d)		1.50%			1.50%			1.50%			1.50%			1.50%
Ratio of net investment income/(loss) to average net assets		0.07%			(0.03%	)		0.03%			(0.23%	)		(0.28%	)
Portfolio turnover rate		58%			53%			52%			59%			61%

(a)	Amount rounds to less than $0.01 per share.
(b)	Total return is a measure of the change in value of an investment in the Fund over the periods covered, which assumes any dividends or capital gains distributions are reinvested in shares of the Fund. The returns shown do not reflect the deduction of taxes a shareholder would pay on Fund distributions or the redemption of Fund shares.
(c)	During the years ended December 31, 2008 and 2007, the Fund received payments from the Adviser of $71,643 and $176,249, respectively, for losses realized on the disposal of investments purchased in violation of investment restrictions, which otherwise would have reduced the total return by 0.03% and 0.06%, respectively (Note 2).
(d)	Absent investment advisory fee reductions by the Adviser, the ratio of expenses to average net assets would have been 1.56%, 1.54%, 1.52% and 1.51% for the years ended December 31, 2009, 2008, 2006 and 2005, respectively.

      

See notes to financial statements.

48

AVE MARIA GROWTH FUND

FINANCIAL HIGHLIGHTS

Per Share Data for a Share Outstanding Throughout Each Year

	Year Ended December 31, 2009			Year Ended December 31, 2008			Year Ended December 31, 2007			Year Ended December 31, 2006			Year Ended December 31, 2005
Net asset value at beginning of year	$	12.86		$	18.94		$	17.22		$	15.00		$	14.99
Income/(loss) from investment operations:
Net investment loss		(0.02	)		(0.06	)		(0.09	)		(0.04	)		(0.05	)
Net realized and unrealized gains/(losses) on investments		3.42			(6.02	)		2.09			2.40			0.10
Total from investment operations		3.40			(6.08	)		2.00			2.36			0.05
Less distributions:
From net realized gains on investments		—			—			(0.28	)		(0.14	)		(0.04	)
Net asset value at end of year	$	16.26		$	12.86		$	18.94		$	17.22		$	15.00
Total return (a)		26.4%			(32.1%	)		11.6%			15.8%			0.3%
Ratios/Supplementary Data:
Net assets at end of year (000’s)	$	115,626		$	83,911		$	116,737		$	85,211		$	63,561
Ratio of net expenses to average net assets (b)		1.50%			1.50%			1.50%			1.50%			1.50%
Ratio of net investment loss to average net assets		(0.16%	)		(0.35%	)		(0.55%	)		(0.30%	)		(0.34%	)
Portfolio turnover rate		9%			22%			9%			13%			29%

(a)	Total return is a measure of the change in value of an investment in the Fund over the periods covered, which assumes any dividends or capital gains distributions are reinvested in shares of the Fund. The returns shown do not reflect the deduction of taxes a shareholder would pay on Fund distributions or the redemption of Fund shares.
(b)	Absent investment advisory fee reductions by the Adviser, the ratio of expenses to average net assets would have been 1.61%, 1.60%, 1.56%, 1.62% and 1.64% for the years ended December 31, 2009, 2008, 2007, 2006 and 2005, respectively.

See notes to financial statements.

49

AVE MARIA RISING DIVIDEND FUND

FINANCIAL HIGHLIGHTS

Per Share Data for a Share Outstanding Throughout Each Period

	Year Ended December 31, 2009			Year Ended December 31, 2008			Year Ended December 31, 2007			Year Ended December 31, 2006			Period Ended December 31, 2005(a)
Net asset value at beginning of period	$	8.72		$	11.54		$	12.08		$	10.59		$	10.00
Income/(loss) from investment operations:
Net investment income		0.13			0.15			0.16			0.14			0.08
Net realized and unrealized gains/(losses) on investments		2.05			(2.74	)		(0.22	)		1.75			0.59
Total from investment operations		2.18			(2.59	)		(0.06	)		1.89			0.67
Less distributions:
From net investment income		(0.13	)		(0.15	)		(0.16	)		(0.14	)		(0.08	)
From net realized gains on investments		—			(0.08	)		(0.32	)		(0.26	)		(0.00	)(b)
Total distributions		(0.13	)		(0.23	)		(0.48	)		(0.40	)		(0.08	)
Net asset value at end of period	$	10.77		$	8.72		$	11.54		$	12.08		$	10.59
Total return (c)		25.3%			(22.8%	)		(0.6%	)		17.9%	%		6.7%	(d)
Ratios/Supplementary Data:
Net assets at end of period (000’s)	$	102,861		$	67,102		$	82,743		$	35,051		$	25,243
Ratio of net expenses to average net assets (e)		1.11%			1.15%			1.14%			1.25%			1.24%	(f)
Ratio of net investment incometo average net assets		1.42%			1.41%			1.26%			1.23%			1.19%	(f)
Portfolio turnover rate		63%			39%			41%			65%			21%	(f)

(a)	Represents the period from the initial public offering (May 2, 2005) through December 31, 2005.
(b)	Amount rounds to less than $0.01 per share.
(c)	Total return is a measure of the change in value of an investment in the Fund over the periods covered, which assumes any dividends or capital gains distributions are reinvested in shares of the Fund. The returns shown do not reflect the deduction of taxes a shareholder would pay on Fund distributions or the redemption of Fund shares.
(d)	Not annualized.
(e)	Absent investment advisory fee reductions by the Adviser, the ratio of expenses to average net assets would have been 1.31% and 1.43%(f) for the periods ended December 31, 2006 and 2005, respectively.
(f)	Annualized.

See notes to financial statements.

50

AVE MARIA OPPORTUNITY FUND

FINANCIAL HIGHLIGHTS

Per Share Data for a Share Outstanding Throughout Each Period

	Year Ended December 31, 2009			Year Ended December 31, 2008			Year Ended December 31, 2007			Period Ended December 31, 2006 (a)
Net asset value at beginning of period	$	6.47		$	9.58		$	10.55		$	10.00
Income/(loss) from investment operations:
Net investment income/(loss)		(0.02	)		0.03			0.07			0.06
Net realized and unrealized gains/(losses) on investments		2.66			(3.11	)		(0.97	)		0.77
Total from investment operations		2.64			(3.08	)		(0.90	)		0.83
Less distributions:
From net investment income		—			(0.03	)		(0.07	)		(0.06	)
From net realized gains on investments		—			—			—			(0.22	)
Total distributions		—			(0.03	)		(0.07	)		(0.28	)
Net asset value at end of period	$	9.11		$	6.47		$	9.58		$	10.55
Total return (b)		40.8%			(32.2%	)		(8.5%	)		8.3%	(c)
Ratios/Supplementary Data:
Net assets at end of period (000’s)	$	16,787		$	9,859		$	18,163		$	17,714
Ratio of net expenses to average net assets (d)		1.25%			1.25%			1.25%			1.24%	(e)
Ratio of net investment income/(loss) to average net assets		(0.25%	)		0.29%			0.66%			0.84%	(e)
Portfolio turnover rate		113%			276%			126%			102%	(e)

(a)	Represents the period from the initial public offering (May 1, 2006) through December 31, 2006.
(b)	Total return is a measure of the change in value of an investment in the Fund over the periods covered, which assumes any dividends or capital gains distributions are reinvested in shares of the Fund. The returns shown do not reflect the deduction of taxes a shareholder would pay on Fund distributions or the redemption of Fund shares.
(c)	Not annualized.
(d)	Absent investment advisory fee reductions and expense reimbursements by the Adviser, the ratio of expenses to average net assets would have been 2.31%, 2.29%, 1.80% and 1.90%(e) for the periods ended December 31, 2009, 2008, 2007 and 2006, respectively.
(e)	Annualized.

See notes to financial statements.

51

AVE MARIA BOND FUND - CLASS I

FINANCIAL HIGHLIGHTS

Per Share Data for a Share Outstanding Throughout Each Year

	Year Ended December 31, 2009			Year Ended December 31, 2008			Year Ended December 31, 2007			Year Ended December 31, 2006			Year Ended December 31, 2005
Net asset value at beginning of year	$	9.80		$	10.14		$	10.26		$	10.10		$	10.29
Income/(loss) from investment operations:
Net investment income		0.32			0.38			0.41			0.38			0.33
Net realized and unrealized gains/(losses) on investments		0.69			(0.34	)		0.11			0.23			(0.15	)
Total from investment operations		1.01			0.04			0.52			0.61			0.18
Less distributions:
From net investment income		(0.32	)		(0.38	)		(0.41	)		(0.38	)		(0.33	)
From net realized gains on investments		—			(0.00	)(a)		(0.23	)		(0.07	)		(0.04	)
Total distributions		(0.32	)		(0.38	)		(0.64	)		(0.45	)		(0.37	)
Net asset value at end of year	$	10.49		$	9.80		$	10.14		$	10.26		$	10.10
Total return (b)		10.4%			0.4%			5.1%			6.2%			1.8%
Ratios/Supplementary Data:
Net assets at end of year (000’s)	$	2,757		$	5,321		$	9,919		$	17,880		$	48,115
Ratio of net expenses to average net assets (c)		0.40%			0.40%			0.37%			0.30%			0.30%
Ratio of net investment incometo average net assets		3.16%			3.85%			3.96%			3.67%			3.32%
Portfolio turnover rate		27%			63%			45%			21%			22%

(a)	Amount rounds to less than $0.01 per share.
(b)	Total return is a measure of the change in value of an investment in the Fund over the periods covered, which assumes any dividends or capital gains distributions are reinvested in shares of the Fund. The returns shown do not reflect the deduction of taxes a shareholder would pay on Fund distributions or the redemption of Fund shares.
(c)	Absent investment advisory fee reductions and expense reimbursements by the Adviser, the ratio of expenses to average net assets would have been 0.70%, 0.70%, 0.68%, 0.65% and 0.61% for the years ended December 31, 2009, 2008, 2007, 2006 and 2005, respectively.

See notes to financial statements.

52

AVE MARIA BOND FUND - CLASS R

FINANCIAL HIGHLIGHTS

Per Share Data for a Share Outstanding Throughout Each Year

	Year			Year			Year			Year			Year
	Ended			Ended			Ended			Ended			Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2009			2008			2007			2006			2005
Net asset value at beginning of year	$	9.79		$	10.12		$	10.25		$	10.08		$	10.28
Income/(loss) from investment operations:
Net investment income		0.29			0.36			0.38			0.35			0.30
Net realized and unrealized gains/(losses) on investments		0.69			(0.33	)		0.10			0.24			(0.16	)
Total from investment operations		0.98			0.03			0.48			0.59			0.14
Less distributions:
From net investment income		(0.29	)		(0.36	)		(0.38	)		(0.35	)		(0.30	)
From net realized gains on investments		—			(0.00	)(a)		(0.23	)		(0.07	)		(0.04	)
Total distributions		(0.29	)		(0.36	)		(0.61	)		(0.42	)		(0.34	)
Net asset value at end of year	$	10.48		$	9.79		$	10.12		$	10.25		$	10.08
Total return (b)		10.2%			0.3%			4.8%			6.0%			1.4%
Ratios/Supplementary Data:
Net assets at end of year (000’s)	$	51,788		$	38,136		$	34,178		$	23,382		$	16,839
Ratio of net expenses to average net assets (c)		0.66%			0.62%			0.65%			0.60%			0.61%
Ratio of net investment income to average net assets		2.90%			3.63%			3.69%			3.37%			3.01%
Portfolio turnover rate		27%			63%			45%			21%			22%

(a)	Amount rounds to less than $0.01 per share.
(b)	Total return is a measure of the change in value of an investment in the Fund over the periods covered, which assumes any dividends or capital gains distributions are reinvested in shares of the Fund. The returns shown do not reflect the deduction of taxes a shareholder would pay on Fund distributions or the redemption of Fund shares.
(c)	Absent investment advisory fee reductions and expense reimbursements by the Adviser, the ratio of expenses to average net assets would have been 0.93%, 0.91%, 0.96%, 0.94% and 0.92% for the years ended December 31, 2009, 2008, 2007, 2006 and 2005, respectively.

See notes to financial statements.

53

AVE MARIA MUTUAL FUNDS

NOTES TO FINANCIAL STATEMENTS

December 31, 2009

1.   Organization and Significant Accounting Policies

The Ave Maria Catholic Values Fund, the Ave Maria Growth Fund, the Ave Maria Rising Dividend Fund, the Ave Maria Opportunity Fund and the Ave Maria Bond Fund (collectively, the “Funds”) are each a diversified series of the Schwartz Investment Trust (the “Trust”), an open-end management investment company registered under the Investment Company Act of 1940 and established as an Ohio business trust under a Declaration of Trust dated August 31, 1992.  The Ave Maria Catholic Values Fund commenced the public offering of its shares on May 1, 2001.  The public offering of shares of the Ave Maria Growth Fund and the Ave Maria Bond Fund commenced on May 1, 2003. The Ave Maria Rising Dividend Fund commenced the public offering of its shares on May 2, 2005. The Ave Maria Opportunity Fund commenced the public offering of its shares on May 1, 2006. The Funds determine and make available for publication the net asset value of each of its shares on a daily basis.

The investment objective of the Ave Maria Catholic Values Fund is to seek long-term capital appreciation from equity investments in companies that do not violate core values and teachings of the Roman Catholic Church.  The investment objective of the Ave Maria Growth Fund is to seek long-term capital appreciation, using the growth style, from equity investments in companies that do not violate core values and teachings of the Roman Catholic Church.  The investment objective of the Ave Maria Rising Dividend Fund is to provide increasing dividend income over time, long-term growth of capital, and a reasonable level of current income from investments in dividend-paying common stocks of companies that do not violate core values and teachings of the Roman Catholic Church. The investment objective of the Ave Maria Opportunity Fund is long-term capital appreciation from equity investments in companies that do not violate core values and teachings of the Roman Catholic Church.   The investment objective of the Ave Maria Bond Fund is to seek preservation of principal with a reasonable level of current income.  See the Funds’ Prospectus for information regarding the investment strategies of each Fund.

The Ave Maria Bond Fund offers two classes of shares:  Class I shares (sold subject to a distribution fee of up to 0.10% of the average daily net assets attributable to Class I shares) and Class R shares (sold subject to a distribution fee of up to 0.25% of the average daily net assets attributable to Class R shares).  Each class of shares represents an interest in the same assets of the Fund, has the same rights and is identical in all material respects except that: (1) Class R bears the expenses of higher distribution fees; (2) certain other class-specific expenses will be borne solely by the class to which such expenses are attributable; (3) each class has exclusive voting rights with respect to matters relating to its own distribution arrangements; and (4) Class I shares require an initial investment of $10 million.  Investment income earned, realized capital gains and losses, and unrealized appreciation and depreciation are allocated daily to each class of shares based upon its proportionate share of total net assets of the Fund. Class-specific expenses are charged directly to the class incurring the expense. Common expenses which are not attributable to a specific class are allocated daily to each class of shares based upon its proportionate share of total net assets of the Fund.

54

AVE MARIA MUTUAL FUNDS

NOTES TO FINANCIAL STATEMENTS (Continued)

Shares of each Fund are sold at net asset value.  To calculate the net asset value, each Fund’s assets are valued and totaled, liabilities are subtracted, and the balance is divided by the number of shares outstanding.  The offering price and redemption price per share are equal to the net asset value per share for each Fund.

The following is a summary of significant accounting policies followed by the Funds:

(a) Valuation of investments – Securities which are traded on stock exchanges are valued at the closing sales price as of the close of the regular session of trading on the New York Stock Exchange on the day the securities are being valued, or, if not traded on a particular day, at the closing bid price.  Securities which are quoted by NASDAQ are valued at the NASDAQ Official Closing Price. Securities traded in the over-the-counter market are valued at the last reported sales price or, if there is no reported sale on the valuation date, at the most recently quoted bid price.  Securities which are traded both in the over-the-counter market and on a stock exchange are valued according to the broadest and most representative market.  Investments representing primarily capital stock of other open-end investment companies are valued at their net asset value as reported by such companies. Securities (and other assets) for which market quotations are not readily available are valued at their fair value as determined in good faith in accordance with consistently applied procedures established by and under the general supervision of the Board of Trustees.  Short-term instruments (those with remaining maturities of 60 days or less) are valued at amortized cost, which approximates market value.

Accounting principles generally accepted in the United States (“GAAP”) establish a single authoritative definition of fair value, set out a framework for measuring fair value and require additional disclosures about fair value measurements.

Various inputs are used in determining the value of each Fund’s investments.  These inputs are summarized in the three broad levels listed below:

•  Level 1 – quoted prices in active markets for identical securities

•  Level 2 – other significant observable inputs

•  Level 3 – significant unobservable inputs

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used to value the Funds’ investments as of December 31, 2009 by security type:

Ave Maria Catholic Values Fund	Level 1		Level 2		Level 3		Total
Common Stocks	$	143,986,788	$	—	$	—	$	143,986,788
Exchange-Traded Funds		2,146,200		—		—		2,146,200
Repurchase Agreements		—		1,604,040		—		1,604,040
Money Market Funds		23,799,528		—		—		23,799,528
Total	$	169,932,516	$	1,604,040	$	—	$	171,536,556

55

AVE MARIA MUTUAL FUNDS

NOTES TO FINANCIAL STATEMENTS (Continued)

Ave Maria Growth Fund	Level 1		Level 2		Level 3		Total
Common Stocks	$	115,349,598	$	—	$	—	$	115,349,598
Money Market Funds		517,269		—		—		517,269
Total	$	115,866,867	$	—	$	—	$	115,866,867

Ave Maria Rising Dividend Fund	Level 1		Level 2		Level 3		Total
Common Stocks	$	92,023,050	$	—	$	—	$	92,023,050
Money Market Funds		11,266,865		—		—		11,266,865
Total	$	103,289,915	$	—	$	—	$	103,289,915

Ave Maria Opportunity Fund	Level 1		Level 2		Level 3		Total
Common Stocks	$	12,210,398	$	—	$	—	$	12,210,398
Exchange-Traded Funds		509,186		—		—		509,186
Repurchase Agreements		—		1,723,117		—		1,723,117
Money Market Funds		2,233,225		—		—		2,233,225
Total	$	14,952,809	$	1,723,117	$	—	$	16,675,926

Ave Maria Bond Fund	Level 1		Level 2		Level 3		Total
Common Stocks	$	10,560,750	$	—	$	—	$	10,560,750
Corporate Bonds		—		24,161,285		—		24,161,285
U.S. Treasury Obligations		—		9,953,895		—		9,953,895
U.S. Government & Agency Obligations		—		8,199,873		—		8,199,873
Money Market Funds		1,565,353		—		—		1,565,353
Total	$	12,126,103	$	42,315,053	$	—	$	54,441,156

Refer to each respective Fund’s Schedule of Investments for a summary of the Level 1 inputs by security type and industry type.

(b) Income taxes – It is each Fund’s policy to comply with the special provisions of Subchapter M of the Internal Revenue Code applicable to regulated investment companies.  As provided therein, in any fiscal year in which a Fund so qualifies and distributes at least 90% of its taxable income, such Fund (but not the shareholders) will be relieved of federal income tax on the income distributed. Accordingly, no provision for income taxes has been made.

In order to avoid imposition of the excise tax applicable to regulated investment companies, it is also each Fund’s intention to declare as dividends in each calendar year at least 98% of its net investment income and 98% of its net realized capital gains plus undistributed amounts from prior years.

The following information is computed on a tax basis for each item as of December 31, 2009:

	Ave Maria Catholic Values Fund			Ave Maria Growth Fund			Ave Maria Rising Dividend Fund			Ave Maria Opportunity Fund			Ave Maria Bond Fund
Undistributed ordinary income	$	22,829		$	—		$	15,986		$	—		$	289
Capital loss carryforwards		(31,119,878	)		(2,264,003	)		(11,389,971	)		(4,699,582	)		(940,482	)
Net unrealized appreciation		24,271,624			9,260,620			11,797,353			3,176,040			2,611,731
Total distributable earnings/(deficit)	$	(6,825,425	)	$	6,996,617		$	423,368		$	(1,523,542	)	$	1,671,538

56

AVE MARIA MUTUAL FUNDS

NOTES TO FINANCIAL STATEMENTS (Continued)

As of December 31, 2009, the Ave Maria Rising Dividend Fund had a capital loss carryforward acquired in a tax-free merger with another mutual fund of $5,488, which expires September 30, 2010.  As of December 31, 2009, the Funds had the following additional capital loss carryforwards for federal income tax purposes:

Expires December 31,	Ave Maria Catholic Values Fund		Ave Maria Growth Fund		Ave Maria Rising Dividend Fund		Ave Maria Opportunity Fund		Ave Maria Bond Fund
2015	$	—	$	—	$	—	$	328,932	$	—
2016		1,636,432		16,221		4,221,818		4,370,650		45,002
2017		29,483,446		2,247,782		7,162,665		—		895,480
	$	31,119,878	$	2,264,003	$	11,384,483	$	4,699,582	$	940,482

These capital loss carryforwards may be utilized in future years to offset net realized capital gains, if any, prior to distributing such gains to shareholders.

During the year ended December 31, 2009, the Ave Maria Opportunity Fund utilized $448,332 of capital loss carryforwards to offset current year realized gains.

The following information is based upon the federal income tax cost of the Funds’ investment securities as of December 31, 2009:

	Ave Maria Catholic Values Fund			Ave Maria Growth Fund			Ave Maria Rising Dividend Fund			Ave Maria Opportunity Fund			Ave Maria Bond Fund
Gross unrealized appreciation	$	29,837,717		$	17,546,478		$	14,069,199		$	3,263,609		$	2,859,558
Gross unrealized depreciation		(5,566,093	)		(8,285,858	)		(2,271,846	)		(87,569	)		(247,827	)
Net unrealized appreciation	$	24,271,624		$	9,260,620		$	11,797,353		$	3,176,040		$	2,611,731
Federal income tax cost	$	145,660,892		$	106,606,247		$	91,492,562		$	11,776,769		$	51,829,425

The difference between the federal income tax cost of portfolio investments and the financial statement cost for the Ave Maria Catholic Values Fund, the Ave Maria Growth Fund, the Ave Maria Rising Dividend Fund and the Ave Maria Opportunity Fund is due to certain timing differences in the recognition of capital losses under income tax regulations and GAAP. These “book/tax” differences are temporary in nature and are due to the tax deferral of losses on wash sales.

For the year ended December 31, 2009, the Ave Maria Growth Fund and the Ave Maria Opportunity Fund reclassified $147,653 and $31,140, respectively, of net investment loss against paid-in capital.  In addition, the Ave Maria Rising Dividend Fund reclassified $108,803 of accumulated net realized losses and $13 of net investment income against paid-in capital due to the expiration of capital loss carryforwards and expenses that were non-deductible for tax purposes, respectively. These reclassifications are reflected on the Statements of Assets and Liabilities. Such reclassifications, the result of permanent differences between the financial statement and the income tax reporting requirements, have no effect on each Fund’s net assets or net asset value per share.

57

AVE MARIA MUTUAL FUNDS

NOTES TO FINANCIAL STATEMENTS (Continued)

The Funds recognize the tax benefits or expenses of uncertain tax positions only when the position is “more-likely-than-not” to be sustained assuming examination by tax authorities. Management has reviewed the tax positions taken on Federal income tax returns for all open tax years (tax years ended December 31, 2006 through December 31, 2009) and has concluded that no provision for unrecognized tax benefits or expenses is required in these financial statements.

(c) Security transactions and investment income – Security transactions are accounted for on the trade date.  Dividend income is recorded on the ex-dividend date.  Interest income is recognized on the accrual basis.  Realized gains and losses on securities sold are determined on a specific identification basis. Discounts and premiums on fixed-income securities purchased are amortized using the interest method.

(d) Dividends and distributions – Dividends from net investment income, if any, are declared and paid annually in December for the Ave Maria Catholic Values Fund, the Ave Maria Growth Fund and the Ave Maria Opportunity Fund. Dividends from net investment income, if any, are declared and paid quarterly for the Ave Maria Rising Dividend Fund and are declared and paid monthly for the Ave Maria Bond Fund.  Each Fund expects to distribute any net realized capital gains annually.  Dividends and distributions to shareholders are recorded on the ex-dividend date. The tax character of distributions paid during the years ended December 31, 2009 and December 31, 2008 was as follows:

Year Ended	Ordinary Income		Long-Term Capital Gains		Total Distributions
Ave Maria Catholic Values Fund:
December 31, 2009	$	78,832	$	—	$	78,832
December 31, 2008	$	—	$	153,313	$	153,313
Ave Maria Rising Dividend Fund:
December 31, 2009	$	1,175,419	$	—	$	1,175,419
December 31, 2008	$	1,559,096	$	17,632	$	1,576,728
Ave Maria Opportunity Fund:
December 31, 2009	$	—	$	—	$	—
December 31, 2008	$	38,915	$	—	$	38,915
Ave Maria Bond Fund - Class I:
December 31, 2009	$	129,497	$	—	$	129,497
December 31, 2008	$	299,506	$	8	$	299,514
Ave Maria Bond Fund - Class R:
December 31, 2009	$	1,311,992	$	—	$	1,311,992
December 31, 2008	$	1,442,217	$	56	$	1,442,273

There were no distributions to shareholders by the Ave Maria Growth Fund during the years ended December 31, 2009 and December 31, 2008.

58

AVE MARIA MUTUAL FUNDS

NOTES TO FINANCIAL STATEMENTS (Continued)

(e) Repurchase agreements – The Funds may enter into repurchase agreements (agreements to purchase securities subject to the seller’s agreement to repurchase them at a specified time and price) with well-established securities dealers or banks. Repurchase agreements may be deemed to be loans by the Funds. It is each Fund’s policy to take possession of obligations issued or guaranteed by the U.S. Government or its agencies or instrumentalities as collateral under a repurchase agreement and, on a daily basis, mark-to-market such obligations to ensure that their value, including accrued interest, is at least equal to the amount to be repaid to the Fund under the repurchase agreement.  If the seller defaults, and the fair value of the collateral declines, realization of the collateral by the Funds may be delayed or limited.

(f) Estimates – The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

(g) Common expenses – Common expenses of the Trust are allocated among the Funds of the Trust based on relative net assets of each Fund or the nature of the services performed and the relative applicability to each Fund.

2.  Investment Advisory Agreements and Transactions with Related Parties

The President and Chairman of the Board of the Trust is also the President and Chief Investment Officer of Schwartz Investment Counsel, Inc. (the “Adviser”).  Certain other officers of the Trust are officers of the Adviser, or of Ultimus Fund Solutions, LLC (“Ultimus”), the administrative, accounting and transfer agent for the Funds, or of Ultimus Fund Distributors, LLC (the “Distributor”), the Funds’ principal underwriter.

Pursuant to Investment Advisory Agreements between the Trust and the Adviser, the Adviser is responsible for the management of each Fund and provides investment advice along with the necessary personnel, facilities, equipment and certain other services necessary to the operations of the Funds.  For such services, the Adviser receives from each of the Ave Maria Catholic Values Fund, the Ave Maria Growth Fund and the Ave Maria Opportunity Fund a quarterly fee at the annual rate of 1.00% of its average daily net assets. The Adviser receives from the Ave Maria Rising Dividend Fund and the Ave Maria Bond Fund a quarterly fee at the annual rate of 0.75% and 0.30%, respectively, of average daily net assets.

The Adviser has contractually agreed to reduce its advisory fees or reimburse a portion of operating expenses until at least May 1, 2011 so that: the net expenses of the Ave Maria Catholic Values Fund and the Ave Maria Growth Fund do not exceed 1.50% of average daily net assets; the net expenses of the Ave Maria Rising Dividend Fund and the Ave Maria Opportunity Fund do not exceed 1.25% of average daily net assets; and the net expenses of Class R and Class I shares of the Ave Maria Bond Fund do not exceed 0.70% and 0.40%, respectively, of average daily net assets. For the year ended December 31, 2009, the Adviser reduced its investment advisory fees by $90,895 with

59

AVE MARIA MUTUAL FUNDS

NOTES TO FINANCIAL STATEMENTS (Continued)

respect to the Ave Maria Catholic Values Fund; reduced its investment advisory fees by $101,151 with respect to the Ave Maria Growth Fund; reduced its investment advisory fees by $124,388 and reimbursed $8,218 of other operating expenses with respect to the Ave Maria Opportunity Fund; and reduced its investment advisory fees by $134,568 and reimbursed $1,158 of Class I expenses with respect to the Ave Maria Bond Fund.

Any fee reductions or expense reimbursements by the Adviser are subject to repayment by the Funds for a period of three years from the time such reductions or reimbursements occurred, provided the Funds are able to effect such repayment and remain in compliance with any undertaking by the Adviser to limit expenses of the Funds. As of December 31, 2009, the amount of fee reductions and expense reimbursements available for reimbursement to the Adviser are as follows:

Ave Maria Catholic Values Fund	$	172,424
Ave Maria Growth Fund	$	270,524
Ave Maria Opportunity Fund	$	381,784
Ave Maria Bond Fund	$	408,603

The Adviser may recapture a portion of the above amounts no later than the dates as stated below:

	December 31, 2010		December 31, 2011		December 31, 2012
Ave Maria Catholic Values Fund	$	—	$	81,529	$	90,895
Ave Maria Growth Fund	$	65,346	$	104,027	$	101,151
Ave Maria Opportunity Fund	$	110,801	$	138,377	$	132,606
Ave Maria Bond Fund	$	133,771	$	139,106	$	135,726

Additionally, during the year ended December 31, 2008, the Adviser reimbursed $71,643, to the Ave Maria Catholic Values Fund for losses realized on the disposal of investments purchased in violation of investment restrictions.

The Chief Compliance Officer of the Trust (the “CCO”) is an employee of the Adviser. The Trust pays the Adviser $25,000 annually for providing CCO services, of which each Fund pays its proportionate share along with the other series of the Trust. In addition, the Trust reimburses the Adviser for out-of-pocket expenses incurred, if any, for providing these services.

JLB & Associates, Inc. (“JLB”) has been retained by the Adviser to manage the investments of the Ave Maria Growth Fund pursuant to the terms of a Sub-Advisory Agreement. The Adviser (not the Fund) pays JLB a fee at an annual rate of 0.30% of the average value of the Fund’s daily net assets. JLB’s fees are reduced on a pro rata basis to the extent that the Adviser reduces its advisory fees or reimburses expenses of the Ave Maria Growth Fund.

60

AVE MARIA MUTUAL FUNDS

NOTES TO FINANCIAL STATEMENTS (Continued)

Pursuant to a Mutual Fund Services Agreement between the Trust and Ultimus, Ultimus supplies regulatory and compliance services, calculates the daily net asset value per share, maintains the financial books and records of the Funds, maintains the records of each shareholder’s account, and processes purchases and redemptions of each Fund’s shares. For the performance of these services, the Ave Maria Bond Fund pays Ultimus a monthly fee at an annual rate of 0.10% of its average daily net assets, and each of the Ave Maria Catholic Values Fund, the Ave Maria Growth Fund, the Ave Maria Rising Dividend Fund and the Ave Maria Opportunity Fund pays Ultimus a monthly fee at an annual rate of 0.15% of its average daily net assets.  The fee payable to Ultimus by each Fund is subject to a minimum monthly fee of $4,000.

Pursuant to a Distribution Agreement between the Trust and the Distributor, the Distributor serves as each Fund’s exclusive agent for the distribution of its shares. The Distributor is an affiliate of Ultimus.

The Ave Maria Catholic Values Fund, the Ave Maria Growth Fund and the Ave Maria Bond Fund have adopted a Shareholder Servicing Plan (the “Plan”) under Section 12(b) of the Investment Company Act of 1940 and Rule 12b-1 thereunder, which allows such Funds to make payments to financial organizations (including the Adviser and other affiliates of each Fund) for providing account administration and personnel and account maintenance services to Fund shareholders.  The annual service fee may not exceed an amount equal to 0.25% of each Fund’s average daily net assets (except that the service fee is limited to 0.10% of the average net assets of the Ave Maria Bond Fund allocable to Class I shares).  During the year ended December 31, 2009, the total expenses incurred pursuant to the Plan were $355,759, $237,401, and $112,220 for the Ave Maria Catholic Values Fund, the Ave Maria Growth Fund, and Class R shares of the Ave Maria Bond Fund, respectively. No expenses were incurred pursuant to the Plan for Class I shares of the Ave Maria Bond Fund.

3.   Investment Transactions

During the year ended December 31, 2009, cost of purchases and proceeds from sales and maturities of investment securities, excluding short-term investments and U.S. government securities, were as follows:

	Ave Maria Catholic Values Fund		Ave Maria Growth Fund		Ave Maria Rising Dividend Fund		Ave Maria Opportunity Fund		Ave Maria Bond Fund
Purchases of investment securities	$	76,158,189	$	17,967,211	$	58,820,836	$	11,180,962	$	15,070,429
Proceeds from sales of investment securities	$	103,205,973	$	8,290,997	$	47,672,608	$	11,201,014	$	10,555,867

61

AVE MARIA MUTUAL FUNDS

NOTES TO FINANCIAL STATEMENTS (Continued)

4.  Contingencies and Commitments

The Funds indemnify the Trust’s officers and Trustees for certain liabilities that might arise from their performance of their duties to the Funds. Additionally, in the normal course of business, the Funds enter into contracts that contain a variety of representations and warranties and which provide general indemnifications. The Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds that have not yet occurred. However, based on experience, the Funds expect the risk of loss to be remote.

5.  Subsequent Events

GAAP requires the Funds to recognize in the financial statements the effects of all subsequent events that provide additional evidence about conditions that existed as of the date of the Statements of Assets and Liabilities.  For non-recognized subsequent events that must be disclosed to keep the financial statements from being misleading, the Funds are required to disclose the nature of the event as well as an estimate of its financial effect, or a statement that such an estimate cannot be made.  In addition, GAAP requires the Funds to disclose the date through which subsequent events have been evaluated.  Management has evaluated subsequent events through the issuance of these financial statements on February 17, 2010 and has noted no such events except as reflected in the following paragraphs.

Effective May 1, 2010, the advisory fee that will be paid under the Investment Advisory Agreements on behalf of the Ave Maria Catholic Values Fund, the Ave Maria Growth Fund, and the Ave Maria Opportunity Fund (see Note 2) will be reduced from 1.00% to 0.95% per annum of each Fund’s average daily net assets.

The Trust’s Agreement and Declaration of Trust provides that if at any time there are no shares outstanding of a particular series of shares or class of shares previously established and designated by the Board of Trustees, the Trustees may abolish that series or class of shares and the establishment and designation thereof.  Pursuant to such provision, the Board of Trustees approved the abolishment of Class I shares of the Ave Maria Bond Fund at a meeting held on February 13, 2010.  In addition, the “Class R” designation previously assigned to the sole remaining class of shares of the Ave Maria Bond Fund has been eliminated.

62

AVE MARIA MUTUAL FUNDS

REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM

To the Shareholders and Board of Trustees of

Ave Maria Catholic Values Fund, Ave Maria Growth Fund,

Ave Maria Rising Dividend Fund, Ave Maria Opportunity Fund,

and Ave Maria Bond Fund:

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of Ave Maria Catholic Values Fund, Ave Maria Growth Fund, Ave Maria Rising Dividend Fund, Ave Maria Opportunity Fund, and Ave Maria Bond Fund (the “Funds”) as of December 31, 2009, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2009, by correspondence with the custodian and brokers. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Ave Maria Catholic Values Fund, Ave Maria Growth Fund, Ave Maria Rising Dividend Fund, Ave Maria Opportunity Fund, and Ave Maria Bond Fund as of December 31, 2009, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for the respective stated periods, in conformity with accounting principles generally accepted in the United States of America.

DELOITTE & TOUCHE LLP

Chicago, Illinois

February 17, 2010

63

AVE MARIA MUTUAL FUNDS

BOARD OF TRUSTEES AND EXECUTIVE OFFICERS

(Unaudited)

Overall responsibility for management of the Trust rests with the Board of Trustees.  The Trustees serve during the lifetime of the Trust and until its termination, or until death, resignation, retirement or removal.  The Trustees, in turn, elect the officers of the Trust to actively supervise its day-to-day operations.  The officers have been elected for an annual term.  The following are the Trustees and executive officers of the Trust:

Trustee/Officer	Address	Age	Position Held with the Trust	Length of Time Served
Interested Trustees:
*   George P. Schwartz, CFA	3707 W. Maple Road, Bloomfield Hills, MI	65	Chairman of the Board/President /Trustee	Since 1992
Independent Trustees:
John E. Barnds	3707 W. Maple Road, Bloomfield Hills, MI	77	Trustee	Since 2005
Louis C. Bosco, Jr.	3707 W. Maple Road, Bloomfield Hills, MI	73	Trustee	Since 2008
Donald J. Dawson, Jr.	3707 W. Maple Road, Bloomfield Hills, MI	62	Trustee	Since 1993
Joseph M. Grace	3707 W. Maple Road, Bloomfield Hills, MI	73	Trustee	Since 2007
Executive Officers:
*   Richard L. Platte, Jr., CFA	3707 W. Maple Road, Bloomfield Hills, MI	58	Vice President and Secretary	Since 1993
*   Timothy S. Schwartz, CFA	3707 W. Maple Road, Bloomfield Hills, MI	38	Treasurer	Since 2000
*   Cathy M. Stoner, CPA	3707 W. Maple Road, Bloomfield Hills, MI	39	Chief Compliance Officer	Since 2010

* George P. Schwartz, Richard L. Platte, Jr., Timothy S. Schwartz and Cathy M. Stoner, as affiliated persons of Schwartz Investment Counsel, Inc., the Fund’s investment adviser, are “interested persons” of the Trust within the meaning of Section 2(a)(19) of the Investment Company Act of 1940. George P. Schwartz is the father of Timothy S. Schwartz.

Each Trustee oversees six portfolios of the Trust: the Ave Maria Catholic Values Fund, the Ave Maria Growth Fund, the Ave Maria Rising Dividend Fund, the Ave Maria Opportunity Fund, the Ave Maria Bond Fund and the Schwartz Value Fund. The principal occupations of the Trustees and executive officers of the Trust during the past five years and public directorships held by the Trustees are set forth below:

64

AVE MARIA MUTUAL FUNDS

BOARD OF TRUSTEES AND EXECUTIVE OFFICERS

(Unaudited) (Continued)

George P. Schwartz, CFA is President and Chief Investment Officer of Schwartz Investment Counsel, Inc. and the co-portfolio manager of the Ave Maria Catholic Values Fund and the Ave Maria Rising Dividend Fund.

John E. Barnds is retired First Vice President of National Bank of Detroit (JPMorgan Chase).

Louis C. Bosco, Jr. is a partner in Bosco Development Company (a real estate firm).

Donald J. Dawson, Jr. is Chairman of Payroll 1, Inc. (a payroll processing company).

Joseph M. Grace is retired Senior Vice President of National Bank of Detroit (JPMorgan Chase).

Richard L. Platte, Jr., CFA is Executive Vice President and Secretary of Schwartz Investment Counsel, Inc. and is the portfolio manager of the Ave Maria Bond Fund and the co-portfolio manager of the Ave Maria Rising Dividend Fund.

Timothy S. Schwartz, CFA is Vice President and Treasurer of Schwartz Investment Counsel, Inc. and the portfolio manager of the Ave Maria Opportunity Fund.

Cathy M. Stoner, CPA is Chief Compliance Officer and Operations Manager of Schwartz Investment Counsel, Inc. Prior to July 2009, she was an Audit Manager with Deloitte & Touche LLP.

65

AVE MARIA MUTUAL FUNDS

CATHOLIC ADVISORY BOARD (Unaudited)

The Catholic Advisory Board reviews the companies selected by the Adviser to ensure that the companies operate in a way that is consistent with teachings and core values of the Roman Catholic Church.  The Catholic Advisory Board evaluates companies using publicly available information, information from the Adviser, and information from shareholders and other sources in making its recommendations.  The following are the members of the Catholic Advisory Board:

Member	Address	Age	Length of Time Served
Lou Holtz	5818 El Camino Real, Carlsbad, CA	73	Since 2007
Lawrence Kudlow	1375 Kings Hwy. East, Suite 260, Fairfield, CT	61	Since 2005
Thomas S. Monaghan	One Ave Maria Drive, Ann Arbor, MI	73	Since 2001
Michael Novak	1150 17th Street, NW, Suite 1100, Washington, DC	76	Since 2001
Paul R. Roney	One Ave Maria Drive, Ann Arbor, MI	52	Since 2001
Phyllis Schlafly	7800 Bonhomme, St. Louis, MO	85	Since 2001

Lou Holtz is the former football coach at University of Notre Dame among others, ESPN college football analyst, author and motivational speaker.

Lawrence Kudlow is the host of CNBC’s “The Kudlow Report” and a nationally syndicated columnist.

Thomas S. Monaghan is Chairman of the Ave Maria Foundation (a non-profit foundation supporting Roman Catholic organizations) and Chancellor of Ave Maria University.  Prior to December 1998, he was Chairman and Chief Executive Officer of Domino’s Pizza, Inc.

Michael Novak is a theologian, author, columnist and former U.S. ambassador.  He is Director of Social and Political Studies of the American Enterprise Institute.

Paul R. Roney is Executive Director of the Ave Maria Foundation and President of Domino’s Farms Corporation.  Prior to December 1998, he was Treasurer of Domino’s Pizza, Inc.

Phyllis Schlafly is an author, columnist and radio commentator.   She is President of Eagle Forum (an organization promoting conservative and pro-family values).

Additional information regarding the Funds’ Trustees, executive officers and Catholic Advisory Board members may be found in the Funds’ Statement of Additional Information and is available without charge upon request by calling (888) 726-9331.

66

AVE MARIA MUTUAL FUNDS

FEDERAL TAX INFORMATION (Unaudited)

In accordance with federal tax requirements, the following provides shareholders with information concerning certain ordinary income dividends paid by the Ave Maria Catholic Values Fund, the Ave Maria Rising Dividend Fund and the Ave Maria Bond Fund during the fiscal year end December 31, 2009. On December 30, 2009, the Ave Maria Catholic Values Fund declared and paid an ordinary income dividend of $0.0063 per share.  Periodically throughout the year, the Ave Maria Rising Dividend Fund paid ordinary income dividends totaling $0.1307 per share. Periodically throughout the year, the Ave Maria Bond Fund paid ordinary income dividends totaling $0.3155 per share for Class I shares and $0.2897 per share for Class R shares. As provided by the Jobs and Growth Tax Relief Reconciliation Act of 2003, a percentage (100%, 100%, and 24.73%) of the ordinary income dividends paid by the Ave Maria Catholic Values Fund, Ave Maria Rising Dividend Fund and the Ave Maria Bond Fund, respectively, may be subject to a maximum tax rate of 15%. Early in 2010, as required by federal regulations, shareholders received notification of their portion of the Funds’ taxable distributions, if any, paid during the 2009 calendar year.

OTHER INFORMATION (Unaudited)

A description of the policies and procedures the Funds use to determine how to vote proxies relating to portfolio securities is available without charge upon request by calling toll-free (888) 726-9331, or on the SEC’s website at http://www.sec.gov. Information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is also available without charge upon request by calling toll-free (888) 726-9331, or on the SEC’s website at http://www.sec.gov.

The Trust files a complete listing of portfolio holdings for each of the Funds with the SEC as of the first and third quarters of each fiscal year on Form N-Q. The filings are available free of charge, upon request, by calling (888) 726-9331. Furthermore, you may obtain a copy of the filings on the SEC’s website at http://www.sec.gov. The Trust’s Forms N-Q may also be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330.

67

AVE MARIA MUTUAL FUNDS

ABOUT YOUR FUNDS’ EXPENSES (Unaudited)

We believe it is important for you to understand the impact of costs on your investment. As a shareholder of the Funds, you incur ongoing costs, including management fees and other Fund expenses. The following examples are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.

A mutual fund’s ongoing costs are expressed as a percentage of its average net assets.  This figure is known as the expense ratio.  The ongoing costs reflected in the tables below are based on an investment of $1,000 made at the beginning of the most recent semi-annual period (July 1, 2009) and held until the end of the period (December 31, 2009).

The tables that follow illustrate each Fund’s costs in two ways:

Actual fund return – This section helps you to estimate the actual expenses that you paid over the period.  The “Ending Account Value” shown is derived from each Fund’s actual return, and the third column shows the dollar amount of operating expenses that would have been paid by an investor who started with $1,000 in the Funds.  You may use the information here, together with the amount you invested, to estimate the expenses that you paid over the period.

To do so, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number given for the Funds under the heading “Expenses Paid During Period.”

Hypothetical 5% return – This section is intended to help you compare the Funds’ ongoing costs with those of other mutual funds.  It assumes that each Fund had an annual return of 5% before expenses during the period shown, but that the expense ratio is unchanged.  In this case, because the return used is not the Funds’ actual returns, the results do not apply to your investment.  The example is useful in making comparisons because the Securities and Exchange Commission (“SEC”) requires all mutual funds to calculate expenses based on a 5% return.  You can assess each Fund’s ongoing costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds.

Note that expenses shown in the table are meant to highlight and help you compare ongoing costs only.  The Funds do not charge sales loads or redemption fees.

The calculations assume no shares were bought or sold during the period.  Your actual costs may have been higher or lower, depending on the amount of your investment and the timing of any purchases or redemptions.

More information about the Funds’ expenses, including historical annual expense ratios, can be found in this report.   For additional information on operating expenses and other shareholder costs, please refer to the Funds’ Prospectus.

68

AVE MARIA MUTUAL FUNDS

ABOUT YOUR FUNDS’ EXPENSES (Unaudited)

(Continued)

Ave Maria Catholic Values Fund

	Beginning Account Value July 1, 2009		Ending Account Value December 31, 2009		Expenses Paid During Period*
Based on Actual Fund Return	$	1,000.00	$	1,269.70	$	8.58
Based on Hypothetical 5% Return (before expenses)	$	1,000.00	$	1,017.64	$	7.63

* Expenses are equal to the Ave Maria Catholic Values Fund’s annualized expense ratio of 1.50% for the period, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

Ave Maria Growth Fund

	Beginning Account Value July 1, 2009		Ending Account Value December 31, 2009		Expenses Paid During Period*
Based on Actual Fund Return	$	1,000.00	$	1,182.50	$	8.25
Based on Hypothetical 5% Return (before expenses)	$	1,000.00	$	1,017.64	$	7.63

* Expenses are equal to the Ave Maria Growth Fund’s annualized expense ratio of 1.50% for the period, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

Ave Maria Rising Dividend Fund

	Beginning Account Value July 1, 2009		Ending Account Value December 31, 2009		Expenses Paid During Period*
Based on Actual Fund Return	$	1,000.00	$	1,220.50	$	5.99
Based on Hypothetical 5% Return (before expenses)	$	1,000.00	$	1,019.81	$	5.45

* Expenses are equal to the Ave Maria Rising Dividend Fund’s annualized expense ratio of 1.07% for the period, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

69

AVE MARIA MUTUAL FUNDS

ABOUT YOUR FUNDS’ EXPENSES (Unaudited)

(Continued)

Ave Maria Opportunity Fund

	Beginning Account Value July 1, 2009		Ending Account Value December 31, 2009		Expenses Paid During Period*
Based on Actual Fund Return	$	1,000.00	$	1,214.70	$	6.98
Based on Hypothetical 5% Return (before expenses)	$	1,000.00	$	1,018.90	$	6.36

* Expenses are equal to the Ave Maria Opportunity Fund’s annualized expense ratio of 1.25% for the period, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

Ave Maria Bond Fund – Class I

	Beginning Account Value July 1, 2009		Ending Account Value December 31, 2009		Expenses Paid During Period*
Based on Actual Fund Return	$	1,000.00	$	1,073.40	$	2.09
Based on Hypothetical 5% Return (before expenses)	$	1,000.00	$	1,023.19	$	2.04

* Expenses are equal to the Ave Maria Bond Fund – Class I’s annualized expense ratio of 0.40% for the period, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

Ave Maria Bond Fund – Class R

	Beginning Account Value July 1, 2009		Ending Account Value December 31, 2009		Expenses Paid During Period*
Based on Actual Fund Return	$	1,000.00	$	1,072.00	$	3.45
Based on Hypothetical 5% Return (before expenses)	$	1,000.00	$	1,021.88	$	3.36

* Expenses are equal to the Ave Maria Bond Fund – Class R’s annualized expense ratio of 0.66% for the period, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

70

THIS PAGE INTENTIONALLY LEFT BLANK.

THIS PAGE INTENTIONALLY LEFT BLANK.

THIS PAGE INTENTIONALLY LEFT BLANK.

Item 2.  Code of Ethics.

As of the end of the period covered by this report, the registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party.  Pursuant to Item 12(a)(1), a copy of registrant’s code of ethics is filed as an exhibit to this Form N-CSR.  During the period covered by this report, the code of ethics has not been amended, and the registrant has not granted any waivers, including implicit waivers, from the provisions of the code of ethics.

Item 3.  Audit Committee Financial Expert.

The registrant’s board of trustees has determined that the registrant has at least one audit committee financial expert serving on its audit committee.  The name of the audit committee financial expert is Joseph M. Grace.  Mr. Grace is “independent” for purposes of this Item.

Item 4.  Principal Accountant Fees and Services.

(a) Audit Fees.  The aggregate fees billed for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or for services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements were $106,050 and $106,050 with respect to the registrant’s fiscal years ended December 31, 2009 and 2008, respectively.

(b) Audit-Related Fees.  No fees were billed in either of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under paragraph (a) of this Item.

(c) Tax Fees.  The aggregate fees billed for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning were $5,650 and $10,650 with respect to the registrant’s fiscal years ended December 31, 2009 and 2008, respectively.  The services comprising these fees are tax consulting and the preparation of the registrant’s federal income and excise tax returns.

(d) All Other Fees.  No fees were billed in either of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item.

(e)(1) The audit committee has not adopted pre-approval policies and procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.

(e)(2) None of the services described in paragraph (b) through (d) of this Item were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f) Less than 50% of hours expended on the principal accountant’s engagement to audit the registrant’s financial statements for the most recent fiscal year were attributed to work performed by persons other than the principal accountant’s full-time, permanent employees.

(g) During the fiscal years ended December 31, 2009 and 2008, aggregate non-audit fees of $5,650 and $10,650, respectively, were billed by the registrant’s principal accountant for services rendered to the registrant.  During the fiscal years ended December 31, 2009 and 2008, aggregate non-audit fees of $17,250 and $17,250, respectively, were billed by the registrant’s principal accountant for services rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant.

(h) The registrant’s Committee of Independent Trustees determined that the provision of non-audit services that were rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant, that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.

Item 5.  Audit Committee of Listed Registrants.

Not applicable

Item 6.  Schedule of Investments.

(a)     Not applicable [schedule filed with Item 1]

(b) Not applicable

Item 7.  Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable

Item 8.  Portfolio Managers of Closed-End Management Investment Companies.

Not applicable

Item 9.  Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable

Item 10.  Submission of Matters to a Vote of Security Holders.

The registrant’s Committee of Independent Trustees shall review shareholder recommendations to fill vacancies on the registrant’s board of trustees if such recommendations are submitted in writing, addressed to the Committee at the registrant’s offices and meet any minimum qualifications adopted by the Committee.  The Committee may adopt, by resolution, a policy regarding its procedures for considering candidates for the board of trustees, including any recommended by shareholders.

Item 11.  Controls and Procedures.

(a)  Based on their evaluation of the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) as of a date within 90 days of the filing date of this report, the registrant’s principal executive officer and principal financial officer have concluded that such disclosure controls and procedures are reasonably designed and are operating effectively to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to them by others within those entities, particularly during the period in which this report is being prepared, and that the information required in filings on Form N-CSR is recorded, processed, summarized, and reported on a timely basis.

(b)  There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12.  Exhibits.

File the exhibits listed below as part of this Form. Letter or number the exhibits in the sequence indicated.

(a)(1) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit:  Attached hereto

(a)(2) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)): Attached hereto

(a)(3)  Any written solicitation to purchase securities under Rule 23c-1 under the Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons:  Not applicable

(b)  Certifications required by Rule 30a-2(b) under the Act (17 CFR 270.30a-2(b)):  Attached hereto

Exhibit 99.CODE ETH Code of Ethics

Exhibit 99.CERT Certifications required by Rule 30a-2(a) under the Act

Exhibit 99.906CERT Certifications required by Rule 30a-2(b) under the Act

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant)   Schwartz Investment Trust

By (Signature and Title)*	/s/ George P. Schwartz
	George P. Schwartz, President

Date         February 25, 2010

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title)*	/s/ George P. Schwartz
	George P. Schwartz, President

Date         February 25, 2010

By (Signature and Title)*	/s/ Timothy S. Schwartz
	Timothy S. Schwartz, Treasurer

Date         February 25, 2010

* Print the name and title of each signing officer under his or her signature.

EX-99.CODE ETH

SCHWARTZ INVESTMENT TRUST

CODE OF ETHICS FOR PRINCIPAL EXECUTIVE AND

SENIOR FINANCIAL OFFICERS

I.  Covered Officers/Purpose of the Code

The code of ethics (this “Code”) for Schwartz Investment Trust (the “Company”) applies to the Company’s Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer(s) (the “Covered Officers” each of whom are set forth in Exhibit A) for the purpose of promoting:

· honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;

· full, fair, accurate, timely and understandable disclosure in reports and documents that a registrant files with, or submits to, the Securities and Exchange Commission (“SEC”) and in other public communications made by the Company;

· compliance with applicable laws and governmental rules and regulations;

· the prompt internal reporting of violations of the Code to an appropriate person or persons identified in the Code; and

· accountability for adherence to the Code.

Each Covered Officer should adhere to a high standard of business ethics and should be sensitive to situations that may give rise to actual as well as apparent conflicts of interest.

II. Covered Officers Should Handle Ethically Actual and Apparent Conflicts of Interest

Overview.  A “conflict of interest” occurs when a Covered Officer’s private interest interferes with the interests of, or his service to, the Company.  For example, a conflict of interest would arise if a Covered Officer, or a member of his family, receives improper personal benefits as a result of his position with the Company.

Certain conflicts of interest arise out of the relationships between Covered Officers and the Company and already are subject to conflict of interest provisions in the Investment Company Act of 1940 (“Investment Company Act”) and the Investment Advisers Act of 1940 (“Investment Advisers Act”).  For example, Covered Officers may not individually engage in certain transactions (such as the purchase or sale of securities or other property) with the Company because of their status as “affiliated persons” of the Company.  The Company’s and the investment adviser’s compliance programs and procedures are designed to prevent, or identify and correct, violations of these provisions.  

This Code does not, and is not intended to, repeat or replace these programs and procedures, and such conflicts fall outside of the parameters of this Code.

Although typically not presenting an opportunity for improper personal benefit, conflicts arise from, or as a result of, the contractual relationship between the Company and the investment adviser/administrator of which the Covered Officers are also officers or employees.  As a result, this Code recognizes that the Covered Officers will, in the normal course of their duties (whether formally for the Company or for the adviser/administrator, or for both), be involved in establishing policies and implementing decisions that will have different effects on the adviser/administrator and the Company.  The participation of the Covered Officers in such activities is inherent in the contractual relationship between the Company and the adviser/administrator and is consistent with the performance by the Covered Officers of their duties as officers of the Company.  Thus, if performed in conformit with the provisions of the Investment Company Act and the Investment Advisers Act, such activities will be deemed to have been handled ethically.  In addition, it is recognized by the Company’s Board of Trustees (“Board”) that the Covered Officers may also be officers or employees of one or more investment companies covered by other codes.

Other conflicts of interest are covered by the Code, even if such conflicts of interest are not subject to provisions in the Investment Company Act and the Investment Advisers Act.  The following list provides examples of conflicts of interest under the Code, but Covered Officers should keep in mind that these examples are not exhaustive.  The overarching principle is that the personal interest of a Covered Officer should not be placed improperly before the interest of the Company.

Each Covered Officer must:

· not use his personal influence or personal relationships improperly to influence investment decisions or financial reporting by the Company whereby the Covered Officer would benefit personally to the detriment of the Company;

· not cause the Company to take action, or fail to take action, for the individual personal benefit of the Covered Officer rather than the benefit of the Company;

· not use material non-public knowledge of portfolio transactions made or contemplated for the Company to trade personally or cause others to trade personally in contemplation of the market effect of such transactions;

· report at least annually any affiliations or other relationships related to conflicts of interest that the Company’s Trustees and Officers Questionnaire covers.

There are some conflict of interest situations that should always be discussed with Counsel for the Company if material.  Examples of these include:

· service as a director on the board of any public company;

· the receipt of any non-nominal gifts;

- 2 - -

· the receipt of any entertainment from any company with which the Company has current or prospective business dealings unless such entertainment is business-related, reasonable in cost, appropriate as to time and place, and not so frequent as to raise any questions of impropriety;

· any ownership interest in, or any consulting or employment relationship with, any of the Company’s service providers, other than its investment adviser, principal underwriter, administrator or any affiliated person thereof;

· a direct or indirect financial interest in commissions, transaction charges or spreads paid by the Company for effecting portfolio transactions or for selling or redeeming shares other than an interest arising from the Covered Officer’s employment, such as compensation or equity ownership.

III.  Disclosure and Compliance

· each Covered Officer should familiarize himself with the disclosure requirements generally applicable to the Company;

· each Covered Officer should not knowingly misrepresent, or cause others to misrepresent, facts about the Company to others, whether within or outside the Company, including to the Company’s directors and auditors, and to governmental regulators and self-regulatory organizations;

· each Covered Officer should, to the extent appropriate within his area of responsibility, consult with other officers and employees of the Company and the adviser/administrator with the goal of promoting full, fair, accurate, timely and understandable disclosure in the reports and documents the Company files with, or submits to, the SEC and in other public communications made by the Company; and

· it is the responsibility of each Covered Officer to promote compliance with the standards and restrictions imposed by applicable laws, rules and regulations.

IV.  Reporting and Accountability

Each Covered Officer must:

· upon adoption of the Code (or thereafter as applicable, upon becoming a Covered Officer), affirm in writing to the Board that he has received, read, and understands the Code;

· annually thereafter affirm to the Board that he has complied with the requirements of the Code;

· not retaliate against any other Covered Officer or any employee of the Company or their affiliated persons for reports of potential violations that are made in good faith; and

- 3 - -

· notify Counsel for the Company promptly if he knows of any violation of this Code.  Failure to do so is itself a violation of this Code.

Counsel for the Company is responsible for applying this Code to specific situations in which questions are presented under it and has the authority to interpret this Code in any particular situation.  However, any approvals or waivers sought by a Covered Officer will be considered by the Committee of Independent Trustees (the “Committee”).

The Company will follow these procedures in investigating and enforcing this Code:

· Counsel for the Company will take all appropriate action to investigate any potential violations reported to him;

· if, after such investigation, Counsel believes that no violation has occurred, Counsel is not required to take any further action;

· any matter that Counsel believes is a violation will be reported to the Committee;

· if the Committee concurs that a violation has occurred, it will inform and make a recommendation to the Board, which will consider appropriate action, which may include review of, and appropriate modifications to, applicable policies and procedures; notification to appropriate personnel of the investment adviser/administrator or its board; or a recommendation to dismiss the Covered Officer;

· the Board will be responsible for granting waivers, as appropriate; and

· any changes to or waivers of this Code will, to the extent required, be disclosed as provided by SEC rules.

V.  Other Policies and Procedures

This Code shall be the sole code of ethics adopted by the Company for purposes of Section 406 of the Sarbanes-Oxley Act and the rules and forms applicable to registered investment companies thereunder.  Insofar as other policies or procedures of the Company, the Company’s adviser, principal underwriter, or other service providers govern or purport to govern the behavior or activities of the Covered Officers who are subject to this Code, they are superseded by this Code to the extent that they overlap or conflict with the provisions of this Code.  The Company’s and its investment adviser’s and principal underwriter’s codes of ethics under Rule 17j-1 under the Investment Company Act are separate requirements applying to the Covered Officers and others, and are not part of this Code.

- 4 - -

VI.  Amendments

Any amendments to this Code, other than amendments to Exhibit A, must be approved or ratified by a majority vote of the Board, including a majority of independent trustees.

VII.  Confidentiality

All reports and records prepared or maintained pursuant to this Code will be considered confidential and shall be maintained and protected accordingly.  Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone other than the Board and Counsel for the Company.

VIII.  Internal Use

The Code is intended solely for the internal use by the Company and does not constitute an admission, by or on behalf of the Company, as to any fact, circumstance, or legal conclusion.

Date: July 24, 2003

- 5 - -

Exhibit A

Persons Covered by this Code of Ethics

George P. Schwartz

Timothy S. Schwartz

- 6 -

EX-99.CERT

EX-99.CERT

CERTIFICATIONS

I, George P. Schwartz, certify that:

1.      I have reviewed this report on Form N-CSR of Schwartz Investment Trust;

2.      Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.      Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4.      The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)  Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.      The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: February 25, 2010 /s/ George P. Schwartz George P. Schwartz, President

CERTIFICATIONS

I, Timothy S. Schwartz, certify that:

1.      I have reviewed this report on Form N-CSR of Schwartz Investment Trust;

2.      Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.      Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4.      The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)  Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.      The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: February 25, 2010 /s/ Timothy S. Schwartz Timothy S. Schwartz, Treasurer

EX-99.906 CERT

EX-99.906CERT

CERTIFICATIONS

George P. Schwartz, Chief Executive Officer, and Timothy S. Schwartz, Chief Financial Officer, of Schwartz Investment Trust (the “Registrant”), each certify to the best of his knowledge that:

1. The Registrant’s periodic report on Form N-CSR for the period ended December 31, 2009 (the “Form N-CSR”) fully complies with the requirements of section 13(a) or section 15(d) of the Securities Exchange Act of 1934, as amended; and

2. The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

CHIEF EXECUTIVE OFFICER	CHIEF FINANCIAL OFFICER
Schwartz Investment Trust	Schwartz Investment Trust
/s/ George P. Schwartz	/s/ Timothy S. Schwartz
George P. Schwartz, President	Timothy S. Schwartz, Treasurer
Date:  February 25, 2010	Date:  February 25, 2010

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Schwartz Investment Trust and will be retained by Schwartz Investment Trust and furnished to the Securities and Exchange Commission or its staff upon request.

This certification is being furnished to the Securities and Exchange Commission solely pursuant to 18 U.S.C. 1350 and is not being filed as part of the Form N-CSR filed with the Commission.